Which of the Following Is Not Correct

question 514

Multiple Choice

Which of the following is not correct?

• A)Economists use some familiar words in specialized ways.
• B)Economics has its own language and its own way of thinking, but few other fields of study do.
• C)Supply, demand, elasticity, comparative advantage, consumer surplus, and deadweight loss are all terms that are part of the economist's language.
• D)The value of the economist's language lies in its ability to provide you with a new and useful way of thinking about the world in which you live.

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Definitions:

Warrants

Warrants are a type of security that gives the holder the right to purchase a company’s stock at a specific price until the expiration date.

Long-term Call Options

Financial derivatives granting the holder the right, but not the obligation, to buy a security at a fixed price within a specific long-term period.

Exercise Price

The price stated in the option contract at which the security can be bought (or sold). Also called the strike price.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's profits and a right to vote on management decisions.