Larry buys stock in A to Z Express Company. Curly Corporation builds a new factory. Whose transaction would be an act of investment in the language of macroeconomics?
a. only Larry's
b. only Curly Corporation's
c. Larry's and Curly Corporation's
d. neither Larry's nor Curly Corporation's
b
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The strike price of a put option for a particular stock is $48. If the stock is selling for $45 on the expiration date, a put option on this stock has an intrinsic value of __________ per share
A) $48 B) $45 C) $3 D) $0
"Everybody has a comparative advantage in something." Do you agree or disagree? Why?
What will be an ideal response?
Under which of the following circumstances is the principal-agent problem likely to be most serious
a. Between general practitioners and patients. b. Between surgeons and patients. c. Between hospitals and nurses. d. Between dentists and physicians. e. Between physicians and lawyers.
Which of the following observations is true of the principle of comparative advantage?
a. It arises from the absolute cost advantage. b. It helps determine most efficient patterns of production. c. It was advanced by Adam Smith. d. It means producing a good using smaller quantities of resources than others.