Author Question: If the interest rate is 5, in one period the future value of 1 today is A) 1.20. B) 1.05. C) ... (Read 50 times)

beccaep · **on:** Jul 1, 2018

If the interest rate is 5, in one period the future value of 1 today is

A) 1.20.
B) 1.05.
C) 95 cents.
D) 20 cents.
E) 5 cents.

Question 2

In the text, the authors present evidence that the market for free agents in professional baseball is subject to the lemons problem. How could a prospective free agent overcome this problem when seeking a new contract?

A) Agree to accept a lower salary with a new team.
B) Rely on standardization to avoid the asymmetric information problem.
C) Decide to negotiate only with their current team.
D) Develop a reputation as a reliable and productive player.