The Great Homebody Nationwide Sweepstakes promises its winners a choice between $200,000 now or $120,000 now and $100,000 next year. The winners should take the $200,000 now
a. no matter what the interest rate is
b. no matter what the interest rate is, if their rate of time preference is high
c. no matter what the interest rate is, if their rate of time preference is low
d. only if the interest rate is above 25 percent
e. only if the interest rate is below 25 percent
D
Economics
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A tax of $5 per airplane ticket is _____
a. a unit tax b. an ad valorem tax c. an income tax d. a value-added tax
Economics
Demand for a good will always increase when
a. the price of a complementary good falls b. the price of a substitute good falls c. tastes change d. incomes decrease e. the price of the good falls
Economics