You have won the lottery. There are two payment options for you. The first option is a lump sum payment of $10 million that you will receive immediately. The second option is an annual payment of $1 million for each of the next 12 years
Assume there is no inflation. How would you make a decision between the two options?
You need to compare the present values of the two payment options and select the option with the higher present value. The present value of the lump sum payment is $10 million, but the total present value of the scheduled payments depends on the interest rate that you would use to discount the future payments back to present value.
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In 2000, about what percentage of federal expenditures were off budget?
a. 1.1 b. 14.1 c. 19.3 d. 22.2
Which of the following statements would MOST accurately describe government spending between 1970 and 2006?
a. State and local governments spend more on goods and services than the federal government, but the federal government spends more in total than state and local governments. b. As a percentage of GDP, federal government spending on goods and services increased rapidly and by 2006, the federal government spending on goods and services was about twice as high as state spending on goods and services. c. As a percentage of GDP, federal government spending has been significantly reduced, which as forced state and local government total spending to increase dramatically to accommodate these cuts. d. As a percentage of GDP, both federal and state and local government total spending have doubled.
Which of the following explains why production rises in most years?
a. increases in the labor force b. increases in the capital stock c. advances in technological knowledge d. All of the above are correct.
Which of the following does not contribute to the high productivity of the U.S. economy?
A. Negative externalities. B. The capital stock. C. Technology. D. Factor mobility.