A gain can be made by the holder of a call option when the current exchange rate
A) exceeds the exercise price.
B) exceeds the forward price.
C) is less than the futures price.
D) falls to zero.
A
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In Country Z, every time a poor person earns $100 by working, the person loses $100 in government support. Which term describes the situation faced by this person?
a. Poverty trap b. Budget constraint c. Opportunity cost d. Utility maximization
In calculating the unemployment rate, part-time workers are:
A. included in the labor force but not the unemployment rate. B. counted as unemployed because they are not working full time. C. counted as employed because they are receiving payment for work. D. excluded from the labor force because they are not actively seeking employment.
Small-denomination certificates of deposits are
A. included in M1 and M2. B. included in M2 but not M1. C. included only in M1. D. included in M1 but not M2.
Use the above figure. The AFC at output level 20 is
A. $3.00. B. $10.00. C. $1.00. D. $0.50.