« previous next »

Author Question: Clifford lives by the motto Eat, drink, and be merry today, for tomorrow doesn't matter. If ... (Read 215 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?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Older adults may grieve intensely over the loss of a person or situation that has been a part of the Older adults may grieve intensely over the loss of a person or situation that has been a part of the
Gray matter and White matter Gray matter and White matter
Alcoholism, Schizophrenia, and Prefrontal Gray Matter Alcoholism, Schizophrenia, and Prefrontal Gray Matter
Will the sun rise tomorrow? Are you sure? “Cause and effect” vs. sense experience. Will the sun rise tomorrow? Are you sure? “Cause and effect” vs. sense experience.
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
Digital Planet Tomorrow's Technology and You, Complete, 10E Digital Planet Tomorrow's Technology and You, Complete, 10E
Video: Embryonic development - Week 4

For a complete list of videos, visit our video library