Suppose that Clint wins the lottery jackpot of $300 million. He can receive it over the next 30 years in annual payments of $10 million, or he can receive a lump sum of $100 million immediately. Assuming that taxes are not a consideration, should Clint
take his winnings as a lump sum?
A. Yes, but only if rapid inflation is expected over the next 30 years.
B. Yes, but only if deflation is expected over the next 30 years..
C. No, the rate of return will always be higher with the 30 annual payments.
D. Yes, if he can invest in financial assets that will yield greater returns than the interest rate
implicit in the annual payments.
D. Yes, if he can invest in financial assets that will yield greater returns than the interest rate
implicit in the annual payments
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Picture a linear downward-sloping demand curve. The price elasticity of demand
a. remains the same for all price ranges on that demand curve b. varies among the price ranges on that demand curve c. varies but is always greater than one whatever the price range on that demand curve d. is always 1.0 for any price range where the price difference is $1, such as $10 and $9 e. is always zero
Refer to the graph shown. Which of the following wage rates would be an effective price floor?
A. $3.50 B. $4.50 C. $7.25 D. $6.50
One of the main arguments against further growth for industrialized nations focuses on the problem og:
What will be an ideal response?
There are 1,000 families in a neighborhood that is affected by noise pollution from a local factory. The noise level is within legal limits, but could be reduced further if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. A committee starts to collect donations to pay for the improvements. Which of the following is most likely to occur?
A. Because each individual contribution is so small and individuals will benefit from the reduction in noise whether they contribute or not, most people will not contribute and the firm will not make the improvements. B. Even if the families raise the $5,000, the firm will not reduce its noise pollution because it is within legal limits. C. The courts will force the firm to spend the $5,000 regardless of whether or not the families contribute the money. D. Because there are relatively few families involved and the individual contribution is so small, all families will voluntarily contribute.