The Per Capita Output of an Economy Is Likely to Increase

question 37

Multiple Choice

The per capita output of an economy is likely to increase if:

• A)the number of workers in the economy grows faster than its population.
• B)the population of the country grows faster than its labor force.
• C)the government increases the tax rates.
• D)the government controls the number of illegal immigrant workers in the economy.
• E)the government manages the foreign investment in the economy.

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Definitions:

Expiration Date

The last day on which an option or futures contract is valid or can be exercised.

Option

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price within a specific timeframe.

Exercised

In financial terms, refers to the act of utilizing the rights provided by a derivative contract, such as executing a buy or sell order under the terms of an option contract.

American Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a specified price within a certain time period.