Which of the following statements is false?
A) A call option will sell for a fraction of the cost of the stock.
B) A futures contract can be written for a commodity (such as wheat), or for a currency.
C) A futures contract gives the owner the right, but not the obligation, to buy or sell a commodity at a specified price on a given future date.
D) The specified price at which an option gives the owner the right to buy a stock at is called the stick price.
C
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Which of the following has NOT slowed productivity in the last 30 years?
A. The effects of 9/11 B. The rising cost of health care C. The influence of special interest groups D. The high cost of computers
Frictional unemployment refers to:
A. people who are out of work and have no job skills. B. short periods of unemployment needed to match jobs and job seekers. C. people who spend relatively long periods out of work. D. unemployment related to the ups and downs of the business cycle.
The theory of consumer behavior assumes that:
A. consumers behave rationally, attempting to maximize their satisfaction. B. consumers have unlimited money incomes. C. consumers do not know how much marginal utility they obtain from successive units of various products. D. marginal utility is constant.
Suppose that you decide to purchase either stocks or bonds of a particular corporation and you also prefer to receive some returns from the securities every year. Which should you buy - stocks or bonds? Why?
What will be an ideal response?