Your Friend Just Won the Lottery

question 2

Multiple Choice

Your friend just won the lottery. He has a choice of receiving $50,000 a year for the next 20 years or a lump sum today. The lottery uses a 15% discount rate. What would be the lump sum your friend would receive?

• A) $312,967
• B) $316,426
• C) $500,000
• D) $1,000,000

Understand the law of demand and its implications on market behavior.

Distinguish between movements along supply and demand curves and shifts in these curves.

Evaluate the effects of changes in income on the demand for normal and inferior goods.

Interpret market dynamics such as excess supply and demand and their impact on prices.

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Definitions:

Pressure to Act Unethically

Situations where individuals or groups feel compelled to compromise their ethical standards due to external pressures or expectations.

Amoral Managers

Managers who lack a clear sense of ethical considerations in their decision-making, focusing more on legal compliance or profit maximization without regard to moral implications.

Ethical Implications

The consideration of the moral consequences and responsibilities linked to a decision, action, or policy.

Personal Values

Core beliefs or ideals that guide an individual's behaviors, decisions, and lifestyle choices.