When Someone Wins a Lottery Jackpot They Are Often Given

question 163

Multiple Choice

When someone wins a lottery jackpot they are often given the choice between receiving their winnings over some period of time or receiving less money but receiving it all at once. It makes the most economic sense to

• A)receive the money over time because the amount received will be greater.
• B)receive the reduced amount of money in one lump sum because it is always better to have money sooner rather than later.
• C)receive whichever option yields the greatest present value.
• D)none of the above

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Definitions:

Leucippus

An ancient Greek philosopher, considered one of the earliest proponents of atomism, the theory that the universe is composed of indivisible components.

Vacuum

A space entirely devoid of matter, or having a pressure much lower than atmospheric pressure.

Law of Conservation

A principle stating that in a closed system, mass (in classical physics) or mass and energy (in quantum physics), cannot be created or destroyed, but only transformed or transferred.

Mass

Mass is a property of physical objects that quantifies the amount of matter within them, offering resistance to acceleration when a force is applied.