Use the Following to Answer Questions

question 45

Multiple Choice

Use the following to answer questions .
Exhibit: Investment and Production Possibilities
-(Exhibit: Investment and Production Possibilities) Suppose the economy is operating on curve B and there is positive depreciation to its existing capital stock. The decision to produce at point r is likely to
I. shift the production possibilities curve slowly toward curve C.
II. shift the production possibilities curve slowly toward curve A.
III. reduce the economy's capital stock.
IV. result in a negative net private investment.

• A) I and IV only
• B) II and III only
• C) II and IV only
• D) II, III, and IV

Identify and explain the Dormant Commerce Clause and its implications for state regulation.

Understand the Fifth Amendment's Takings Clause.

Recognize and articulate the right to privacy as interpreted by the U.S. Supreme Court.

Understand the concepts of procedural and substantive due process.

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Definitions:

American Call Option

A financial derivative that gives the buyer the right, but not the obligation, to buy a security at a specified price within a certain time frame.

Exercise Price

The fixed price at which the holder of an options contract can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.

ESOs

Employee Stock Options; rights granted to employees to purchase a company's stock at a predetermined price for a specific period.

Convertible Bond

A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.