« previous next »

Author Question: Clifford lives by the motto Eat, drink, and be merry today, for tomorrow doesn't matter. If ... (Read 199 times)

Lobcity

  • Hero Member
  • *****
  • Posts: 524
on: Jul 1, 2018
Clifford lives by the motto Eat, drink, and be merry today, for tomorrow doesn't matter.
 
  If today's consumption is represented by x and tomorrow's consumption is represented by y, then which of the following best represents Clifford's utility function? A) U = x - y
  B) U = x/y
  C) U = x
  D) U = y

Question 2

A major corporation hires high school students on a part-time basis. It offers a reward of 5,000 to any of its high school seniors who graduate college in four years.
 
  What is the present value of that reward to a student who just finished her junior year of high school, assuming a nominal rate of interest of 8?


cloudre37

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

5000/(1.08 )5 = 3,675.15


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Brain scans showing the white-matter pathways involved in everyday learning: Brain scans showing the white-matter pathways involved in everyday learning:
The violation of mores is a serious matter. In this case, it is serious enough that security at an ... The violation of mores is a serious matter. In this case, it is serious enough that security at an ...
For some Americans, religion is an “easy-going, makes-little-difference” matter, as expressed in ... For some Americans, religion is an “easy-going, makes-little-difference” matter, as expressed in ...
Interactions of Light and Matter Interactions of Light and Matter
The three states of matter: solid, liquid, and gas. The three states of matter: solid, liquid, and gas.
Countries where malaria is prevalent today are located in the warm tropics and subtropics Countries where malaria is prevalent today are located in the warm tropics and subtropics
Video: Conjunctivitis

For a complete list of videos, visit our video library