Assume you pay a premium of $0.50/bu for a put option with a strike price of $4.00/bu and that the current futures price is $3.75/bu. Then, the option is:

A. In-the-money
B. At-the-money
C. Out-of-the-money
D. None of the above


Ans: A. In-the-money

Economics

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If a job pays a wage of $50 per hour, but has a non-wage cost valued at $20 per hour, the net benefit of taking the job equals:

A) $2.5 per hour. B) $20 per hour. C) $30 per hour. D) $70 per hour.

Economics

An increase in labor hours will lead to

A) a shift of the aggregate production function but no movement along it. B) a movement along the aggregate production function but no shift in it. C) both a movement along and a shift in the aggregate production function. D) neither a movement along nor a shift in the aggregate production function.

Economics

Most firms have very little flexibility in their choice of input proportions.

Answer the following statement true (T) or false (F)

Economics

Sandee Hollub, an elementary school teacher, believed that she was being treated unfairly by her principal, so she stormed off the job and two days later found another teaching job in another school. For two days, Sandee experienced

a. cyclical unemployment b. structural unemployment c. involuntary unemployment d. frictional unemployment e. being out of the labor force

Economics