Consider Cash Flows for Projects X and Y Such As

question 25

Multiple Choice

Consider cash flows for Projects X and Y such as: Project X Project Y
Year 1 $3000 $ 0
Year 2 $ 0 $3000
A rational person would prefer receiving cash flows sooner because

• A) the money can be reinvested.
• B) the money is nice to have around.
• C) the investor may be tired of a particular investment.
• D) the investor is indifferent to either proposal.

Understand the role of non-monetary rewards in labor supply decisions and job satisfaction.

Understand the impact of international trade on the demand for skilled versus unskilled labor.

Comprehend the concept of human capital and how it affects earnings.

Articulate the reasons for wage differences among different job types and industries.

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Definitions:

Confounding Variable

An outside influence that changes the effect of a dependent and independent variable. This extraneous influence is used to influence the outcome of an experimental design.

Volunteer Bias

A shortcoming of findings derived from a sample of volunteers instead of a representative sample; the volunteers may differ from those who did not volunteer.

Experimenter's Bias

A form of bias introduced by the experimenter whose expectations about the outcome of the experiment can be subtly communicated to the participants.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.