You Can Realize the Same Value as That Derived from Stock

question 25

Multiple Choice

You can realize the same value as that derived from stock ownership if you:

• A)sell a put option and invest at the risk-free rate of return.
• B)buy a call option and write a put option on a stock and also lend out funds at the risk-free rate.
• C)sell a put and buy a call on a stock as well as invest at the risk-free rate of return.
• D)lend out funds at the risk-free rate of return and sell a put option on the stock.
• E)borrow funds at the risk-free rate of return and invest the proceeds in equivalent
• F)amounts of put and call options.

Interpret the implications of diminishing returns on the distribution of income among workers.

Recognize varying interpretations and critiques of the marginal productivity theory of income distribution.

Distinguish between compensating differentials and efficiency wages in the context of wage disparities.

Assess the role of discrimination and demographic factors in influencing income distribution.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the higher market price they actually receive.

Tax Revenue

Funds acquired by governments from taxation, employed to support public programs and fulfill government responsibilities.

Total Surplus

The sum of consumer surplus and producer surplus, representing the overall economic benefit to society from a market transaction.

Government Imposes

Actions taken by a government to enforce regulations, taxes, or penalties on a population or industry to achieve economic or societal goals.