An Option Contract Creates A(n)​

question 13

Multiple Choice

An option contract creates a(n) ​

• A)irrevocable offer.
• B)contract.
• C)proposal.
• D)none of the above.

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Definitions:

Deadweight Loss

The reduction in economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.

Excise Tax

Excise tax is a tax imposed on specific goods, services, or activities, often included in the price of products like tobacco, alcohol, and gasoline, aimed at reducing consumption of these goods or generating revenue.

Music Downloads

Digital files of musical works that can be legally or illegally transferred from the Internet to a computer or mobile device.

Consumer Surplus

The discrepancy between the full amount consumers intend and have the means to pay for a good or service and the amount they genuinely pay.