Typically, the Higher the Level of Income Per Person in a Country

question 58

Multiple Choice

Typically, the higher the level of income per person in a country, the higher the level of spending per person on health care.This relationship between income and spending indicates that health care is a

• A)normal good.
• B)inferior good.
• C)luxury.
• D)necessity.

---

Definitions:

American Call

An option contract that allows the holder to buy a specified quantity of an underlying asset at a set price before the contract expires.

Option Exercise

The act of utilizing the right, but not the obligation, to buy or sell an underlying security at a pre-determined price within a specified time frame.

Expiration Date

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

Striking Price

Also known as the exercise price, it is the price at which the holder of an option can buy (call) or sell (put) the underlying asset.