One Reason for Believing That in Practice Capitalism Fails to Live

question 6

Multiple Choice

One reason for believing that in practice capitalism fails to live up to its own ideal of competition is

• A) government subsidies and protective tariffs.
• B) monopolies control almost all areas of economic life.
• C) so many small companies go bankrupt.
• D) the outsourcing of jobs.

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Definitions:

Strike Price

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

LEAPS

Long-Term Equity Anticipation Securities, which are options contracts with expiration dates longer than one year, providing a long-duration investment or hedging opportunity.

Strike Price

The specified price at which the holder of an option can buy (call option) or sell (put option) the underlying asset or security until the expiration date.

Call Option

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