=+5.6 Everyday Application: Thinking About Old Age: Consider two individuals who each take a very different view of life, and consider how this shapes their tastes over intertemporal trade-offs.

A. Jim is a 25-year-old athlete who derives most of his pleasure in life from expensive and physically intense activities: mountain climbing in the Himalayas, kayaking in the Amazon, bungee jumping in New Zealand, lion safaris in Africa, and skiing in the Alps. He does not look forward to old age when he can no longer be as active and plans on getting as much fun in early on as he can. Ken is quite different; he shuns physical activity but enjoys reading in comfortable surroundings. The more he reads, the more he wants to read and the more he wants to retreat to luxurious libraries in the comfort of his home. He looks forward to quiet years of retirement when he can do what he loves most.