Which of the Following Is Not Likely to Cause a Decrease

question 74

Multiple Choice

Which of the following is not likely to cause a decrease in labor productivity?

• A)a decline in student achievement scores
• B)a service sector that is growing as a percentage of GDP
• C)decreased spending on research and development
• D)increases in capital formation
• E)high federal budget deficits

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Definitions:

Hedge Position

An investment made to reduce the risk of adverse price movements in an asset, often by taking an offsetting position in a related security.

Market Price

The market price is the current price at which an asset or service can be bought or sold.

American Call Option

A type of options contract that allows the holder to buy a specified amount of an underlying asset at a set price before the contract expires.

Exercise Price

The rate at which an individual holding an option can acquire (if it's a call option) or offload (if it's a put option) the fundamental asset.