If an individual wins a multimillion dollar lottery and chooses to receive annual payments equaling the total prize, this person has a
A) relatively low discount rate.
B) relatively high discount rate.
C) discount rate of zero.
D) It is impossible to tell.
C
You might also like to view...
Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one of the tickets is $36
A) Walter will receive $4 of consumer surplus from buying one ticket. B) Violet and Walter receive a total of $52 of consumer surplus from buying one ticket each. No one else will buy a ticket. C) Violet and Walter will each buy two tickets. D) Xavier, Yolanda, and Zachary will receive a total of $68 of consumer surplus since they will buy no tickets.
Suppose new electronic devices make it easier to monitor the effort levels of workers. If some shirking is still possible in the efficiency wage model, what happens to the level of employment?
A) Increases, but some unemployment remains B) Increases, and the labor market reaches full employment C) Decreases D) Does not change
If the government enacts a tariff on a component imported by a domestic manufacturer from an international supplier, which of the following would be the best example of a disruptive outcome?
a. The manufacturer would pay a higher price for the component. b. The manufacturer would seek an alternative supplier for the component. c. The manufacturer would move production overseas to the country where the component is manufactured. d. The manufacturer would negotiate a lower price for the component.
Price elasticity of supply is defined as:
a. the slope of the supply curve. b. the slope of the supply curve divided by the price. c. the percentage change in price divided by the percentage change in quantity supplied. d. the percentage change in quantity supplied divided by the percentage change in price.