Suppose sarah is out at a local club with her friends and finds out that it is "ladies' night" and that all women can drink for free. she knows that if she drinks it will give her immediate pleasure equal to 80.00 utils, but she also knows that if she drinks she will feel bad the next morning and will therefore have a cost of drinking equal to 150.00 utils.
if sarah's discount weight for tomorrow is 0.50, will she drink at the club?
a. no, her net benefit from drinking is negative; therefore, the costs of drinking outweigh the benefits.
b. no, her net benefit from drinking is positive; therefore, the costs of drinking outweigh the benefits.
c. yes, her net benefit from drinking is negative; therefore, the benefits of drinking outweigh the costs.
d. yes, her net benefit from drinking is positive; therefore, the benefits of drinking outweigh the costs.

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation