In the Circular-Flow Diagram, Factors of Production Are the Goods

question 122

True/False

In the circular-flow diagram, factors of production are the goods and services produced by firms.

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Definitions:

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business.

Put Option

The right to sell an asset at a specified exercise price on or before a specified expiration date.

At The Money

The option’s exercise price and the price of the underlying asset are equal.

Out Of The Money

Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.