You are comparing two investment options that each pay 5 percent interest, compounded annually. both options will provide you with $12,000 of income. option a pays three annual payments starting with $2,000 the first year followed by two annual payments of $5,000 each. option b pays three annual payments of $4,000 each. which one of the following statements is correct given these two investment options?
a. both options are of equal value given that they both provide $12,000 of income. b. option a has the higher future value at the end of year three. c. option b has a higher present value at time zero than does option a. d. option b is a perpetuity. e. option a is an annuity.

Employees who are paid to complete a task, such as build a house, are paid on a(n) basis

Who is better at multi-tasking? in business, employees are often asked to perform a complex task when their atten-tion is divided (i.e., multi-tasking). human factors (may 2014) published a study designed to determine whether video game players are better than non–video game play-ers at multi-tasking. each in a sample of 60 college stu-dents was classified as a video game player or a non-player. participants entered a street crossing simulator and were asked to cross a busy street at an unsigned intersec-tion. the simulator was designed to have cars traveling at various high rates of speed in both directions. during the crossing, the students also performed a memory task as a distraction. two variables were measured for each student: (1) a street crossing performance score (measured out of 100 points) and (2) a memory task score (measured out of 20 points). the researchers found no differences in either the street crossing performance or memory task score of video game players and non-gamers. “these results,” say the researchers, “suggest that action video game players [and non-gamers] are equally susceptible to the costs of dividing attention in a complex task”

Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery