All other things held constant, premiums on options will increase when the
A) exercise price increases.
B) volatility of the underlying asset increases.
C) term to maturity decreases.
D) futures price increases.
B
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In economics, money is
A) a financial instrument backed by some precious metal such as gold or silver. B) whatever the government defines it to be. C) anything that people generally accept in exchange for goods and services. D) another term for income.
When minority workers gain access to better occupations, they are evenly distributed within each occupational group
Indicate whether the statement is true or false
In the description of labor costs associated with fishing, the textbook measures the cost of labor that corresponds with different quantities of fish. Which of the following statements is true?
a. Labor costs for fish production cannot be estimated. b. The cost of labor increases at an increasing rate at low levels of output. c. Labor costs increase at the same rate over all ranges of output. d. At higher levels of output, the cost of labor increases at an increasing rate. e. At higher levels of output, the cost of labor decreases at an increasing rate.
If the short-run Phillips curve were stable, which of the following would be unusual?
a. an increase in government spending and a fall in unemployment
b. an increase in inflation and a decrease in output
c. a decrease in the inflation rate and a rise in the unemployment rate
d. a decrease in the money supply and a rise in the unemployment rate.