READING 1 / QUICK QUIZ

Preferences Across Time and Comparison

3 questions. Choose the meaning or usage that best fits each situation. Try answering before reopening the passage.

1What does discounted utility contribute to the exercise?A. A rule that every person must value every future outcome identically.B. A guarantee that the reader will always choose the most expensive book.C. A framework for weighing future outcomes partly according to when they occur.D. A measure only of how many books physically fit on a shelf.

2Stability of a preference as time passes while relevant information and outcomes stay unchanged is _____.A. an unexpected new constraintB. time consistencyC. a changed information setD. a revised outcome

3Which statement uses the hedonic treadmill model carefully?A. The model proves that all preferences about books are identical across people.B. Every reader's happiness must return to exactly the same fixed level after every event.C. Initial happiness from a larger collection may fade as the reader becomes accustomed to it.D. Any improvement in circumstances is incapable of affecting happiness even initially.

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