When Economists Are Trying to Help Improve the World,they Are

question 39

Multiple Choice

When economists are trying to help improve the world,they are

• A)in the realm of positive economics rather than normative economics.
• B)in the realm of macroeconomics rather than microeconomics.
• C)scientists.
• D)policy advisers.

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Definitions:

Conversion Ratio

The number of shares a bondholder can receive upon converting their bonds into equity shares.

Call Option

A finance-related contract granting the buyer the privilege, rather than a requirement, to buy an asset at a fixed price within a set period.

Risk-Free Bond

A debt security that is assumed to have no risk of default, typically issued by a government with a stable financial outlook, allowing investors to predict with a high degree of confidence their return on investment.