Figure 3 Depicts The

question 1

Multiple Choice

Figure 3 depicts the:

• A)position diagram for the writer (seller)of a call option.
• B)profit diagram for the writer (seller)of a call option.
• C)position diagram for the writer (seller)of a put option.
• D)profit diagram for the writer (seller)of a put option.

---

Definitions:

Consumer Sovereignty

The determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy; consumers’ direction of production through their dollar votes.

Dollar Votes

The “votes” that consumers cast for the production of preferred products when they purchase those products rather than the alternatives that were also available.

Goods and Services

The physical items (goods) and activities or benefits (services) that are produced or provided to meet the needs and wants of consumers.

Entrepreneurial Ability

Refers to the capacity to innovate, introduce new products or services, improve processes, and manage business ventures effectively.