A call option is a contract
A. that gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract.
B. that gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract.
C. in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price.
D. that gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
Answer: A
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
The winner of a second-price sealed-bid auction pays an amount equal to ________
A) half of his bid B) the lowest bid C) the second-highest bid D) his valuation of the good
Which of the following do development economists NOT recommend to nations seeking to increase their rates of economic growth?
A. letting creative destruction run its course B. protecting home producers from international competition C. promoting private property rights D. promoting increased education
Excess demand results in a surplus.
Answer the following statement true (T) or false (F)