The present value of a given payment will be lower
a. if the payment comes sooner than expected
b. the lower the prevailing interest rate
c. the further in the future the payment is to be received
d. the sooner the payment is to be received
e. if the payment is made in cash
C
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The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?
A) Incomes are distributed unequally in all four countries. B) Income distribution in country D is the most unequal among the four countries. C) Incomes are higher in country A than in country B. D) Income distribution is more equal in country B than in country D.
In 2007, the National Collegiate Athletic Association put a moratorium on new Football Bowl Series (formerly Division IA) teams. This policy will
A) protect the producer surplus of existing football programs. B) ensure that when entry occurs, producer surplus will not be zero. C) ensure that when entry occurs, producer surplus will be positive. D) ensure that consumer surplus is greater in the future.