The Problems Created by Scarcity

question 90

Multiple Choice

The problems created by scarcity:

• A) could be solved if more people worked overtime.
• B) are of no concern to the top income earners.
• C) concern individuals, but are not a concern on the macro level.
• D) apply to everyone because resources are limited in general.

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Definitions:

Underlying Stock

The stock that is the basis for a particular derivative instrument, such as an option.

Market Value

The current quoted price at which an asset or company can be bought or sold on the open market.

November 47.50 Call

A call option contract for the right to buy a specific financial instrument at a price of 47.50, expiring in November.

Call

A Call option is a financial contract that gives the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specific price within a specific period.