A put option gives the owner the
A) right to sell the underlying security.
B) obligation to sell the underlying security.
C) right to buy the underlying security.
D) obligation to buy the underlying security.
A
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Assuming a 10-percent decrease in both the nominal (money) wage and the price level in the classical model, then the quantity of labor supplied will
a. also decrease by 10 percent. b. increase by 10 percent. c. remain constant. d. decrease by less than 10 percent.
Assume a market that has an equilibrium price of $5. If the market price is set at $9, producer surplus:
A. rises for some producers because of the increased price. B. decreases for some producers because of fewer transactions taking place. C. Both A and B are true. D. Neither of these statements is true.
Most checkable deposits are insured up to $250,000 by
a. state banking commissions. b. the Federal Reserve Board. c. U.S. Department of the Treasury. d. the Federal Deposit Insurance Corporation.
Which of the following statements is not correct?
a. Government policies may improve the market's allocation of resources when negative externalities are present. b. Government policies may improve the market's allocation of resources when positive externalities are present. c. A positive externality is an example of a market failure. d. Without government intervention, the market will tend to undersupply products that produce negative externalities.