An Increase in Lifetime Wealth

question 38

Multiple Choice

An increase in lifetime wealth

• A) increase current labor supply and increase current consumption demand.
• B) increase current labor supply and decrease current consumption demand.
• C) decrease current labor supply and increase current consumption demand.
• D) decrease current labor supply and decrease current consumption demand.

---

Definitions:

Strike Price

The set price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying security or commodity.

Market Price

The going rate for which a commodity or service can be traded or acquired in the market.

Put Option

A financial contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.

Exercise Price

The sum for which the bearer of an option has the privilege to acquire (with a call option) or dispose of (with a put option) the foundational asset.