What is the opportunity cost of spending the $100 now

Assignment Help Microeconomics
Reference no: EM13319117

You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest.What is the opportunity cost of spending the $100 now?

Reference no: EM13319117

Questions Cloud

Determine the liquid density in british gravitational units : It is commonly known that there are 16 ounces in 1 lb. Consider a 0.5lbf glass that weighs 1 lbf when filled with 8 ounces of liquid. Determine the liquid density in British gravitational units and in SI units.
Calculate and plot using a spreadsheet : Calculate and Plot using a spreadsheet the series for Real GDP and calculate and Plot using a spreadsheet the yearly % changes in Nominal GDP (i.e. [GDPt+1-GDPt]/GDPt)
Determine the density and pressure in cgs absolute units : A certain gas has a molecular mass of 40. It is under a pressure of 2.5atm and a temperatature of 25 Degree Celsius. Determine its density and pressure in CGS absolute units.
Explain what is the equilibrium concentraction of h30+ : The equilibrium contant Kc for the reaction HF(aq)+H20(l)-->H30+(aq)+F-(aq) is 3.5x10^-4. What is the equilibrium concentraction of H30+ if the initial concentration of HF is 1.0M
What is the opportunity cost of spending the $100 now : You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5 percent interest.What is the opportunity cost of spending the $100 now?
Discuss the sticky-wage model of aggregate supply : Discuss the sticky-wage model of aggregate supply, carefully identifying any assumptions made. How well does the sticky-wage model explain the observed behaviour of real wages over the business cycle?
Determine the modulus of elasticity and the poissons ratio : Under this load the bar elastically deforms so that the gae length increases to 2.007 in. and the cross section decreases to 0.599x0.599 in. Determine the modulus of elasticity and the poisson's ratio for this metal.
Explain acetic acid is weak monoprotic acid : Determine the acid dissociation contant for a 0.10M acetic acid solution that has a pH of 2.87. Acetic acid is weak monoprotic acid.
Build the annual index of openness for australia and italy : Who has the absolute advantage at producing Cigar and who has the comparative advantage at Bourbon and who is specializing in Bourbon according to Comparative Advantage now?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  How much must justin charge to avoid shutdown

A new contraption to help you eat yogurt easily while driving, autogurt, is now on the market. It costs Justin $2 in equipment per unit, and takes him approximately 6 min to make. Justin charges $20 per hour. Justin additionally pays an electricit..

  Draw a budget constraint and an indifference curve

Draw a budget constraint and an indifference curve for an individual who works in period one and is retired (earns no income) in period two. He consumes some of his income in period 1 and saves the rest of his income for period 2.

  Explain rate of depreciation

Both countries have the same rate of depreciation (5%). Use the Solow model to calculate the ratio of their steady state levels of income per capita, assuming ? =1/3. a) Verbally, interpret your answer. b) How would your result change if ? =1/2?

  What are two kinds of changes in the capital stock

What two kinds of changes in the capital stock can improve labor productivity How can each type be illustrated with a per-worker production function What determines the slope of the per-worker production function

  Define profits maximized-total profits

The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship: Q = 400 - .5P

  How and why does it differ from the original is curve

According to the life-cycle / permanent-income hypothesis, consumption depends on the present discounted value of income. An increase in the real interest rate will make future income worth less, thereby reducing the present discounted value and r..

  What is the benefit to a multiscreen theater

What are the benefits of the staggered movie times allowed by multiple screens? What is the benefit to a multiscreen theater of locating at a shopping mall?

  The government and social responsibility

The Government and Social Responsibility

  Money market in equilibrium economy

Suppose that the money market is initially in equilibrium for an economy. Describe with the aid of a diagram how market adjusts to an increase in money supply, an increase in real GDP

  Stockpiled lobster-price elasticity

Describe the effect of increase from 1998-1999. How would the increase in demand affect the price? How would the price effect depend upon the price elasticity of supply? Please describe how. (Explain the illustration instead of actually drawing it)

  What is the cost basis of the new molding machine

You purchased a new molding machine for $155,000 by trading in a similar machine that had a book value of $18,000. Assuming that the trade in allowance was $20,000 and that $85,000 cash was paid for the new asset, what is the cost basis of the ne..

  What is the expected value of each lottery

utility if a function of income (I), given by: \(U = 101\) as long as I is less than or equal to 300. If I is greater than 300, your utility is a constant equal to 3,000. Suppose you have a choice between having an income of 300 with ce..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd