Winners of the Jackson City Lottery prize of $10 million are paid $1 million per year for ten years. Paid out in this form, this prize is
a. worth less than $10 million because the payment is deferred over time
b. worth more than $10 million because the payments remain constant for the next ten years
c. worth more than $10 million because the tax burden on the smaller payments is less
d. worth exactly $10 million
e. not worth $10 million only if the interest rate is positive
A
You might also like to view...
If the money multiplier is 3 and the Fed buys $50,000 worth of bonds, what happens to the money supply?
a. it increases by $100,000 b. it increases by $150,000 c. it decreases by $100,000 d. it decreases by $200,000
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. In the long run in this monopolistically competitive industry,
A. some firms will leave the industry until the remaining firms break even economically. B. product supply will increase so prices will go up. C. some firms will enter the industry and industry profits will increase. D. all firms will leave the industry.
Risk is typically measured:
a. by comparing the size of a firm to other firms operating in the market. b. by looking at the economic profit that a firm has earned in the past few years. c. by determining whether the bonds issued by a firm are of high or low value. d. by comparing how much the stock price fluctuates compared with an average firm. e. by comparing how much the price of the bond falls whenever the price of a firm's product rises.
Consider Figure 12.5. If player B confesses and player A does not, then:
A. both players spend 4 years in jail. B. both players spend 1 year in jail. C. player A spends 0 years in jail, and player B spends 8 years in jail. D. player A spends 8 years in jail, and player B spends 0 years in jail.