Economic Systems Differ According to Which Two Main Characteristics

question 264

Multiple Choice

Economic systems differ according to which two main characteristics?

• A) who owns the factors of production and the methods used to coordinate economic activity
• B) the technology used in production and the quantity and quality of natural resources
• C) how goods are produced and who gets them
• D) the political system in place and the degree of scarcity facing the economy

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Definitions:

Convertible Bond

A bond that offers the option to be exchanged for a specific quantity of the issuing company's stock at chosen intervals throughout its tenure, generally at the choice of the person holding the bond.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a certain period.

Common Stock

Equity ownership in a corporation, giving holders voting rights and a residual claim on corporate earnings via dividends.

Option's Value

The intrinsic and time value associated with an options contract, determining its worth on the market.