You just won the lottery. You have a choice of three different prize options. Option #1: receive $1,200 immediately; Option #2: receive $1,500 a year from now; Option #3: receive $1,800 five years from now. If the interest rate is 15% the ranking of the options, from the lowest present value to the highest is
a. Option #2, Option #3, Option #1
b. Option #3, Option #1, Option #2
c. Option #1, Option #2, Option #
d. Option #1, Option #3, Option #2
e. Option #3, Option #2, Option #1
B
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Which of the following supports the skeptics doubts about the idea that a "New Economy" had emerged in the late 1990s?
A) In early 2000, investment in computer equipment turned to negative growth. B) A drop in productivity growth in 2001 was followed by a bounce-back of productivity growth in early 2002. C) The opinion of Alan Greenspan, Chairman of the Federal Reserve System, concerning the pace at which technological innovations are being applied D) None of the above.
Given the indifference curve and budget line above, which of the following must be true at point A?
If the U.S. dollar increases in value relative to other currencies, how does this affect the aggregate demand curve?
A) This will move the economy up along a stationary aggregate demand curve. B) This will move the economy down along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
Assume you have four tickets to a U2 concert. You decide to sell each of them separately on an auction site such as eBay. Your auctions represent
A) price differentiation. B) perfect price discrimination amongst those who bid for your tickets. C) perfect price discrimination amongst all people who buy tickets for the concert. D) an illegal act, subject to state and federal prosecution.