Congratulations You Have Just Won the Tuition Lottery! the Lottery

question 43

Multiple Choice

Congratulations you have just won the tuition lottery! The lottery pays out four beginning-of-the-year cash flows of $50,000 each with the first cash flow today and the remaining cash flows to follow at the start of years 2,3,and 4.Since the lottery is managed by the Fergetaboutit University system you are considering their offer of a lump sum of $160,000 today.If after considering all of he relevant economic factors,you conclude it is reasonable to use a 12% interest rate to compare these two offers.Which offer should you take and why?

• A)Take the lump sum because the annuity PV is only $151,867.47.
• B)Take the annuity because the PV of $170,091.56 is greater than the lump sum.
• C)Take the annuity because the PV of $238,966.40 is greater than the lump sum.
• D)Take the lump sum because the annuity PV is only $135,595.95.

Understand the various motivational theories, including arousal theory, drive-reduction theory, incentive theory, and hierarchy of needs theory.

Relate motivational theories to real-life behaviors and preferences in individuals.

Explain the concept of optimal arousal levels and their impact on performance.

Describe the role of physiological needs and how they prioritize over other needs in motivating behavior.

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Definitions:

Social Security

A government program that provides financial assistance to people with an inadequate or no income, particularly the elderly, disabled, and unemployed.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, beginning with the stock market crash of 1929, leading to massive unemployment and poverty.

American Attitudes

The collective viewpoints or beliefs shared by the American public on various issues, culture, and policies.

Welfare

Governmental support aimed at ensuring the health, safety, and well-being of the population, often including assistance programs for the economically disadvantaged.