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 143 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
Great answer, keep it coming :)

steff9894

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Pin the skin and subcutaneous fascia on a spot on the back using the thumb of one hand; place the ... Pin the skin and subcutaneous fascia on a spot on the back using the thumb of one hand; place the ...
Nutrient-Dense Food Choices Nutrient-dense foods provide more nutrition per calorie and fewer solid Nutrient-Dense Food Choices Nutrient-dense foods provide more nutrition per calorie and fewer solid
Healthy choice Healthy choice
What cause the white spot area on throat? What cause the white spot area on throat?
Gr. 12 Chem Multiple Choice Gr. 12 Chem Multiple Choice
Siri plans to retire in 18 years and would like to receive $10 000.00 per month for twenty ... Siri plans to retire in 18 years and would like to receive $10 000.00 per month for twenty ...
Video: Sex-Linked Traits! How are eye colors inherited in fruit flies?

For a complete list of videos, visit our video library