Lucas Enterprises Recently Opted to Open a New Retail Outlet

question 10

Multiple Choice

Lucas Enterprises recently opted to open a new retail outlet.If the outlet outperforms the expectations,the manager can opt to increase the store's size.If it underperforms,the manager can opt to close the store.These choices that the manager has been given are called:

• A)call options.
• B)put options.
• C)straddles.
• D)managerial options.
• E)executive options.

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Definitions:

Cyclical Unemployment

A type of unemployment that relates to the cyclical trends in the business cycle, increasing during recessions and decreasing in expansions.

Unemployment Spells

Periods of time during which an individual is searching for employment but is unable to find work.

Frictional Unemployment

Temporary unemployment existing in a job market due to time taken by workers to move between jobs, including new or re-entering workers.

Structural Unemployment

Unemployment arising from a persistent mismatch between the skills of workers and the requirements of jobs, often exacerbated by technology or market changes.