Factor Endowments Refer to the Extent to Which a Country

question 104

Multiple Choice

Factor endowments refer to the extent to which a country:

• A) supports education, research, and development.
• B) develops the infrastructure to support industrialism.
• C) supports free trade.
• D) is endowed with such resources as land, labor, and capital.

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Definitions:

Call Contract

An agreement that gives the option buyer the right, but not the obligation, to buy a specified quantity of an asset at a predetermined price within a certain time frame.

Put Contract

A financial contract giving the holder the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.

Writer of a Call Option

The individual or entity that sells a call option and has the obligation to sell the underlying asset at the set strike price if the option is exercised.

Buyer of a Put Option

An investor who acquires the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a set time frame.