Economists Speaking Like Scientists Make

question 2

Multiple Choice

Economists speaking like scientists make

• A)normative statements.
• B)prescriptive statements.
• C)claims about how the world is.
• D)claims about how the world should be.

Explain the principles of dichotomy corollary and construction corollary.

Recognize the characteristics of cognitive complexity and simplicity.

Identify the applications and critiques of personal construct theory.

Comprehend the role and interpretation of the Role Construct Repertory (REP) Test.

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Definitions:

In-the-Money

An option is considered in-the-money when it has intrinsic value, meaning that for a call option the market price of the asset is above the strike price, and for a put option, it's below the strike price.

Strike Price

The fixed price at which an option's holder has the right to purchase (if a call option) or sell (if a put option) the underlying asset or commodity.

Option Premium

An option premium is the price that a buyer pays to the seller for an options contract, which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price.

Conversion Price

The predetermined price at which convertible securities can be exchanged for common stock.