People tend to say that they would prefer to have $1000 today rather than $1200 two weeks from now-even though, logically, they would be better off with the $1200 in two weeks. The phenomena underlying this tendency is known as a. risk aversion. b. the certainty effect. c. temporal discounting. d. the status quo bias.

Question

Business

Noel Walters

24 July, 09:05

People tend to say that they would prefer to have $1000 today rather than $1200 two weeks from now-even though, logically, they would be better off with the $1200 in two weeks. The phenomena underlying this tendency is known as a. risk aversion. b. the certainty effect. c. temporal discounting. d. the status quo bias.

+2

Answers (1)

Know the Answer?

Brooklynn · Answer 1

c. temporal discounting.

Explanation:

When discounting the 1,200 from factors like risk and other possibilities the consumers consider to not trade with the bee factory. This is a serious reputation harm that may be solved over time.

Now, finnancially speaking, when people discount the check the person will do math in their heed to compare with the 1,000 dollars today and 1,200 in the future.