Assume you won Loto-Quebec! Instead of receiving the prize as a lump sum payment, you choose to receive $50,000 per year for 10 years. As a result of that you decide to work part-time at 30 hours per week instead of 50 hours per week. Assuming a 50- week year, what is the annual income effect'equal to? O A. -1/100 O B. -1/50 O C. -1/10 O D. 1/50
Assume you won Loto-Quebec! Instead of receiving the prize as a lump sum payment, you choose to receive $50,000 per year for 10 years. As a result of that you decide to work part-time at 30 hours per week instead of 50 hours per week. Assuming a 50- week year, what is the annual income effect'equal to? O A. -1/100 O B. -1/50 O C. -1/10 O D. 1/50
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Assume you won Loto-Quebec! Instead of receiving the prize as a lump sum payment,
you choose to receive $50,000 per year for 10 years. As a result of that you decide to
work part-time at 30 hours per week instead of 50 hours per week. Assuming a 50-
week year, what is the annual income effect equal to?
O A. -1/100
O B. -1/50
O C. -1/10
O D. 1/50
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