If you thought the share price of a stock was going to fall, would you be more likely to buy a call option or a put option?
A) a call option
B) a put option
C) a call option and a put option
D) There is not enough information given to answer this question.
B
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Labor productivity is equal to the quantity of
A) real GDP. B) real GDP consumed by the total population in one hour. C) real GDP produced by one hour of labor. D) workers employed during one hour. E) workers who are gainfully employed.
The concept of limited liability
A) does not apply to a corporation. B) means that the owners of a corporation have liability limited to the value of the shares in the firm. C) means that owners of a firm are subject to double taxation. D) limits the amount of specialization that can occur in a firm.
A builder is planning to construct to a departmental store with an investment worth $1,200 . He receives proposals from two retailers interested to lease space in it assuring him future cash flows worth $1,000 at the end of the first year and $700 at the end of two years. If the building lasts only for two years and the discount rate is 15 percent, what would be the net present value of this
project? a. $300.50 b. $257.63 c. $198.67 d. $118.38
Which part of real GDP fluctuates most over the course of the business cycle?
a. consumption expenditures b. government expenditures c. investment expenditures d. net exports