Suppose you pre-ordered a non-refundable movie ticket to x-men: apocalypse. on the day of the movie you decide that you would rather not go to the movie. according to economists, what is the rational thing to do?
a. since the cost of the movie ticket is a sunk cost, it should not influence your decision. your decision should be based solely on whether you want to see the movie or not.
b. your should go to the movie to minimize your losses.
c. you should not waste resources. since you have paid for the ticket you should watch the movie.
d. you should go to the movie to maximize your utility.

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)

Financial information that is capable of making a difference in a decision is

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?