Which of the Following Statements Is True

question 109

Multiple Choice

Which of the following statements is true?

• A)A person who chooses to work at a job that pays $40,000 a year instead of a job that pays $80,000 a year is considered (by economists)to be irrational.
• B)The wage rate paid in one labor market can affect the supply of labor in another labor market.
• C)The wage rate paid in one labor market cannot possibly affect the wage rate paid in another labor market.
• D)The demand for every type of labor is always the same.

---

Definitions:

Out-Of-The-Money

A term used in options trading to describe an option that has no intrinsic value. For a call option, this is when the strike price is above the market price of the underlying asset; for a put option, it's the opposite.

Exercising Option

The act of utilizing the right to buy or sell an underlying asset at a predetermined price before the expiration date.

In The Money

A term used in options trading to describe a situation where an option has intrinsic value, indicating a favorable position.