You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: Receive $2,000 five years from now. The interest rate is 15 percent (0.15) per year. Rank these three options from highest present value to lowest present value
a. Option 1, Option 2, Option 3
b. Option 3, Option 2, Option 1
c. Option 2, Option 3, Option 1
d. Option 3, Option 1, Option 2
e. Option 1, Option 3, Option 2
C
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Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies. If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A) 5 pies B) 10 pies C) 15 pies D) 20 pies
Who among the following is neither employed nor unemployed?
a. Susan, who is currently jobless because of an accident but is available for work b. Greg, who is a doctor working at a community hospital c. Steve, who is a civil engineer working for a construction company d. Izzie, who is currently jobless and has given up her job search due to market-related reasons
Not all unemployment ends with the job seeker finding a job
a. True b. False Indicate whether the statement is true or false
When risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual, it is called:
A. diversification. B. risk analysis. C. risk aversion. D. risk pooling.