This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Bobby faces two choices. The first is to receive 600 on the spot. The other choice is to receive 800 ... (Read 132 times)

sdfghj

  • Hero Member
  • *****
  • Posts: 552
on: Jul 1, 2018
Bobby faces two choices. The first is to receive 600 on the spot. The other choice is to receive 800 a year from now. The interest rate is 5 per year. What could a possible explanation for Bobby choosing to receive 600 on the spot?
 
  A) Bobby finds that the present value of the 800 a year from now is less than 600.
  B) Bobby may have time-inconsistent preferences.
  C) Although Bobby chooses 600 on the spot, he is actually indifferent between the two options.
  D) None of the above is correct.

Question 2

Billy is considering the purchase of a rental house. The house costs 240,000 and it will generate annual revenues of 15,000 and annual expenses of 3,000. Nevertheless, Billy will need to borrow 240,000 at an interest rate of 7 per year in case he decides to make this investment. Should Billy purchase this house?
 
  A) No, he will lose money.
  B) Yes, his profits will be zero.
  C) No, his profits will be positive but close to zero.
  D) Yes, he will profit from this investment.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

TheDev123

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 32% of students answer this correctly


sdfghj

  • Member
  • Posts: 552
Reply 2 on: Jul 1, 2018
Excellent

lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Creating Red Spot Creating Red Spot
Composite Faces Composite Faces
The Wong/Baker FACES rating scale. The Wong/Baker FACES rating scale.
Apply direct pressure to points on low back. Press into paraspinal muscles from the side. Move spot ... Apply direct pressure to points on low back. Press into paraspinal muscles from the side. Move spot ...
Mobilize knuckles with figure-8s. Turn the hand so palm faces the table. Grasp the proximal phalange ... Mobilize knuckles with figure-8s. Turn the hand so palm faces the table. Grasp the proximal phalange ...
Sweet potato fries are not the healthier choice! Sweet potato fries are not the healthier choice!
Video: Allergic Rhinitis

For a complete list of videos, visit our video library