Economists Include the Prices of Only the Most Important Consumer

question 286

True/False

Economists include the prices of only the most important consumer goods, such as food and energy, in the aggregate price level.

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Definitions:

Employee Stock Option (ESO)

A benefit given to employees which grants them the right to purchase shares of the company at a specified price after a certain period.

Call Options

Financial contracts giving the option buyer the right, but not the obligation, to buy a stock, bond, commodity, or other assets at a specified price within a specific time period.

European Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell an asset at a specified price only on the option's expiration date.

Conversion Price

The price per share at which a convertible security, such as convertible bonds or convertible preferred stock, can be converted into common stock.