A Group of Five Students Are Sharing a House

question 65

Multiple Choice

A group of five students are sharing a house. All of the students like to take long, hot showers in the morning, but when they do, there is not enough hot water for their housemates. Which of the following will be least successful in getting the students to take shorter showers?

• A) open communication that encourages a fair and equitable solution between the housemates
• B) Find a neutral mediator.
• C) Negotiate hot water use online via an instant messenger.
• D) Reframe the hot water as a common good.

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Definitions:

Compounded Semiannually

A method of calculating interest where the interest is added to the principal amount twice a year, leading to interest earning interest over time.

Compounded Annually

A method of calculating interest where the interest is added to the principal sum each year, thus each subsequent interest calculation is made on an increased principal.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.

Future Value

The amount of money an investment is expected to be worth in the future, considering interest or capital gains.