Subcontracts Can Only Occur

question 30

Multiple Choice

Subcontracts can only occur:

• A)in government procurement.
• B)if there is a prime contractor bidding out part of a job.
• C)when a lead contractor is behind schedule.
• D)if substitution is required after the specification has been set.
• E)when purchasing a good,not a service.

Calculate the break-even price for option positions.

Identify factors affecting option pricing and profitability.

Recognize the roles and mechanisms of options clearing corporations.

Explain option strategies such as covered calls and protective puts.

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Definitions:

Market Failure

When the free market's distribution of goods and services is inefficient, it typically results in a reduction of societal welfare.

Inefficient Allocation

A situation where resources are not used in the best possible way, often leading to waste or unmet needs.

Negative Externality

An undesirable outcome of an economic activity that affects third parties who did not choose to incur that cost or benefit.

Air Pollution

The presence of substances in the atmosphere that are harmful to human health, the environment or cause climate change.