Economics

question 115

Multiple Choice

Economics:

• A)studies human behavior when scarcity exists and choices must be made.
• B)provides the only reasonable explanation of how people make decisions.
• C)can accurately explain all human behavior since it is based on the assumption of rationality.
• D)is better at showing the way things ought to be than the other social sciences.
• E)is the only social science that can explain the existence and behavior of public institutions.

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Definitions:

Convertible Bonds

Financial instruments that can be converted into a specified number of common stock shares at the discretion of the bondholder, usually at certain times during their life.

Control

The power to influence or direct people's behavior or the course of events.

Warrants

Financial instruments allowing the holder to choose to purchase or sell an asset at a predetermined price prior to a specified deadline, without being required to do so.

Call Options

Financial derivatives that give the holder the right, but not the obligation, to buy an asset at a specified price within a specific time frame.