A state lottery has a Million Dollar Lottery game that pays $1,000 a week for life. Assuming a 6% nominal rate of interest and generously assuming an infinite lifetime, can this game be called a "Million Dollar Lottery"?
What will be an ideal response?
Assuming that the payments last forever, the present value of the payments is roughly 52,000/.06 = $866,667. Not really a million dollars.
Economics
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Pure public goods involve positive externalities.
A. True B. False C. Uncertain
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Countries import some goods and export other goods primarily because of:
A) unemployment. B) self-sufficiency. C) comparative advantage. D) the law of increasing opportunity cost.
Economics
How might other firms in an oligopoly interpret your drop in price?
What will be an ideal response?
Economics
A medical student's internship at a local hospital is an example of
A. income redistribution. B. a compensating wage differential. C. economic income. D. an investment in human capital.
Economics