According to Economists, When Two People Make Exactly the Opposite

question 24

Multiple Choice

According to economists, when two people make exactly the opposite decision

• A) one of them is acting irrationally.
• B) each person evaluates the situation according to his/her individual self-interest.
• C) one of them is acting out of spite.
• D) one of them should compromise.

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Definitions:

Net Present Value

The current value of a series of future cash flows, discounted back to the present using a specific rate.

AAR

Average Annual Return, represents the arithmetic mean of a series of annual returns, offering a straightforward way of understanding an investment's performance over time.

Payback

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.