If You Have a Choice of Receiving a Cash Payment

question 21

Multiple Choice

If you have a choice of receiving a cash payment of $5 today:

• A) you are indifferent to receiving $5.07 next year if your opportunity cost is 7%.
• B) you are indifferent to receiving $5.00 next year if your opportunity cost is 7%.
• C) you are indifferent to receiving $5.35 next year if your opportunity cost is 10%.
• D) you are indifferent to receiving $5.35 next year if your opportunity cost is 7%.
• E) you are indifferent to receiving $5.10 next year if your opportunity cost is 10%.

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Definitions:

Per Se Violation

A per se violation is an act that is inherently illegal, without the need for additional proof of its harmfulness or malicious intent.

Sherman Antitrust Act

A landmark U.S. law passed in 1890 aimed at promoting competition by prohibiting monopolies and other forms of anticompetitive behavior.

2004 Amendments

Refers to changes or modifications made to laws or regulations in the year 2004.

Justice Department

A branch of government typically responsible for the enforcement of laws and administration of justice; in the United States, it is a federal executive department.