Answer to Question #295280 in Economics for johnzinta

Question

Opportunity cost is all about making choices and how you adequately and effectively manage it. What do you understand by the concepts of intra and inter temporal choice models in Managerial Economics, further as a fresh graduate of MSc in Managerial Economics, clearly demonstrate how intra and inter temporal choice models can make society incur an opportunity cost if not managed adequately and effectively ?

Answer 1

Intertemporal choice refers to decisions, such as spending habits, made in the near-term that can affect future financial opportunities. A preference for focusing on current consumption leads many individuals to make intertemporal choices that accommodate near-term needs and wants.