It Is December 10th and You Have a Stock You

question 37

Multiple Choice

It is December 10th and you have a stock you purchased last January 5th,which has increased in value by more than $3,000.You think the stock will not significantly increase or decrease in value over the next month or so,and you would like to take your gain.What should you do?

• A)Sell the stock today and take the gain
• B)Wait until December 30th and sell the stock then
• C)Sell the stock on January 6th or later
• D)Do not sell the stock until it starts to go down in value

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Definitions:

Firm

An organization or business entity that produces and sells goods or services in an attempt to generate profit.

Circular Flow Model

An economic model that depicts how money and goods/services move through the economy in different markets between households and firms.

Resource Markets

Markets where resources like labor, capital, and raw materials required for production are bought and sold.

Workers

Individuals engaged in any form of labor, either employed or unemployed, contributing to the production of goods and services.