A car salesperson gives you four alternative ways to pay for your car. The first is to pay $18,000 today. The second is to pay $19,000 one year from today. The third is to pay $20,300 two years from today. The fourth is to pay $21,500 three years from today. If the interest rate is 6 percent, which payment option has the lowest present value and which has the highest?
a. The first is lowest; the second is highest.
b. The second is lowest; the third is highest.
c. The third is lowest; the fourth is highest.
d. The fourth is lowest; the first is highest.
b
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Of the following OECD countries, which has the best breast cancer and prostate cancer survival rates?
A) the United Kingdom B) Japan C) Canada D) the United States
Jack wants to buy a new house. But the surge in housing demand over the last few months has led to a sharp increase in housing prices making it impossible for him to afford one on his current income. This is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) conspicuous externality
Interpret what an increase in demand and an increase in supply mean. Discuss the causes of an increase in demand and an increase in supply. How are increases in demand and supply expressed graphically? ?
What will be an ideal response?
If government wishes to increase the quantity of higher education consumed, what can be done to accomplish this?
A) Charge tuition that is below the full costs of providing the educational services B) Operate public colleges C) Provide reduced tuition to students D) Any of the above alternatives would increase the consumption of education E) The government should not attempt to increase education, since it is a private good