A derivative is a financial instrument that derives its value from another financial instrument, an underlying asset, or indices.
a. true
b. false
Answer: a. true
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Give three examples of ways in which financial markets channel household savings into investment projects
What will be an ideal response?
A firm's resource at a given point in time can be defined as:
a. those investments made by it in profitable organizations. b. those tangible and intangible assets attached to it semipermanently. c. its ability to control the market price. d. its lobbying ability built over years of experience.
What characteristic do both human and physical capital share?
A) Both are controlled by the government. B) Current costs are incurred for future benefits. C) The use of both exhibits rivalry. D) They can easily be transferred to new ownership.
When the movie Jurassic Park debuted in Westwood, California, the price of tickets was $7.50. After several months the ticket price had fallen to $4.00. This is an example of
A) peak-load pricing. B) second-degree price discrimination. C) a two-part tariff. D) tying. E) none of the above