Jim Owns a Farm That He Wants to Sell

question 108

Multiple Choice

Jim owns a farm that he wants to sell.He learns that a highway will be built near the farm in the future,giving access to the farmland from a nearby city and thus making the land attractive to housing developers.Expecting the net present value (NPV) of the sale to be greater after the highway is built,he decides not to sell at this time.What real option is Jim taking?

• A)option to delay
• B)option to expand
• C)option to abandon
• D)option to switch
• E)option to sell

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Definitions:

Sadistic

Characterized by deriving pleasure through inflicting pain, suffering, or humiliation on others.

Social Roles

Socially defined behaviors considered appropriate for individuals occupying certain positions within a given group.

Social Norms

are the accepted behaviors or rules within a society or group.

Social Identities

An individual's sense of who they are based on their group memberships, such as nationality, ethnicity, religion, and social class.