Title: QUIZ: Why Are We So Impatient? A Look into Money and Delayed Gratification -- Page One Economics®
Course: FRE Resources > Section: Why Are We So Impatient? A Look into Money and Delayed Gratification -- Page One Economics®

Q: Which of the following best describes an example of delayed gratification?
- Seeing a $200 pair of shoes and deciding to purchase them now with a credit card
- Seeing a $200 pair of shoes and deciding to save the $200 with a goal to purchase them in two months
- Seeing a $200 pair of shoes and deciding to use the money from your savings account to purchase them now
- Seeing a $200 pair of shoes and deciding to ask a parent to purchase them for you that same day, with the promise that you will pay them back
A: Seeing a $200 pair of shoes and deciding to save the $200 with a goal to purchase them in two months

Q: Why do people face opportunity costs when deciding between saving and spending their money?
- A person cannot spend and save the same dollar.
- Saving and spending result in delayed gratification.
- When someone saves money, they miss out on interest.
- Unlike saving, spending requires self-control.
A: A person cannot spend and save the same dollar.

Q: Diana has $2,000, and she has the choice of either spending it on a weekend vacation or saving it in an account for a two-week vacation later in the year. Diana decides to spend it on a weekend vacation. What is the opportunity cost of her decision?
- Not going on the two-week vacation
- Any amount over $2,000 for the weekend trip
- The time spent planning the vacation
- New luggage for her vacation
A: Not going on the two-week vacation

Q: Charlie knows that he should save up for a minivan for the family. But, when he goes online and sees an ad for sneakers that cost $100, he purchases the new pair of sneakers. This is an example of what psychological force that prevented Charlie from saving?
- Opportunity cost
- Spending
- Self-control
- Investing
A: Self-control

Q: Which of the following describes why people often bend to instant gratification?
- More weight is placed on current wants than future wants.
- The present is not as tempting as the future.
- It is easier to emotionally connect to the future than to the present.
- People don’t have self-control problems.
A: More weight is placed on current wants than future wants.

Q: In the marshmallow experiment, the kids who ate the marshmallow before the 20 minutes were up were not rewarded. This is an example of what psychological force that prevented them from waiting to eat the marshmallow?
- Saving
- Eating better
- Delayed gratification
- Opportunity cost
A: Delayed gratification

Q: The opportunity cost of delaying saving for retirement is the interest earned through having money invested for the future.
- True
- False
A: True

Q: Being able to resist an immediate reward with the hope of gaining a reward more valuable in the future is the ability to delay gratification.
- True
- False
A: True