When you borrow stock from a broker and sell it now with plans to buy it back after it drops in price, you are engaging in a
A) margin call
B) European option
C) American option
D) short sale
D
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In order to determine a household's budget line, you must know the
A) prices of the goods bought and the household's income. B) prices of the goods bought, but not the household's income. C) household's income, but not the prices of goods bought. D) household's income, prices of the goods bought, and the household's preferences.
Which of the following expenditures are not included in the consumption component of GDP?
What will be an ideal response?
What is one reason why stocks are not considered money?
a. They cannot be readily exchanged for legal tender. b. Their value fluctuates, and there is no guarantee of being able to obtain their original value. c. They have exceptionally high liquidity, so determining their value is difficult. d. Brokers pool them with the money of other depositors.
Which of the following is a fixed cost in a pizza restaurant?
a. rent b. produce purchases c. hourly labor charges d. delivery expenses