Should You Prefer to Receive $100,000 Right Now or $10,000

question 86

Multiple Choice

Should you prefer to receive $100,000 right now or $10,000 at the end of each of the next 12 years?

• A) $100,000 now.
• B) $10,000 at the end of each of the next 12 years.
• C) The answer depends on the time value of money.
• D) Either alternative is equally valuable.

---

Definitions:

Domestic Producers

Domestic producers are businesses or individuals that create or manufacture goods and services within a country's borders.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials, used as a raw material for fuel and in the petrochemical industry.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive.

Tariff

A tax imposed by a government on imported or exported goods.