Which of the Following Statements Is True

question 27

Multiple Choice

Which of the following statements is true?

• A)The technology supply responds to market conditions.
• B)Human capital has no role in research and development.
• C)Attempts to bring about technological change via research and development are often tried but are usually not successful.
• D)Technological change occurs at a constant rate.
• E)Industries that attempt to produce new technologies face very little risk.

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Definitions:

Expiration Date

The last day on which an option or futures contract is valid or can be exercised.

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price within a specific timeframe.

Exercised

In financial terms, refers to the act of utilizing the rights provided by a derivative contract, such as executing a buy or sell order under the terms of an option contract.

American Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a certain time period.