Consider two countries, A and B. Country A is a closed country with a relative abundance of labor and holds a comparative advantage in the production of textiles. Country B has a relative abundance of
A. labor.
B. capital.
C. Both capital and labor.
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Do base management fees most likely get paid to the manager of a hedge fund regardless of the funds performance?
A. Yes
B. No,only when the funds gross return is positive
C. No,only when the funds net asset value exceeds the previous high water mark
A trader seeking to sell a very large block of stock, or a piece of urban real estate property, for her client will most likely execute the trade in a(n):
A. Brokered market.
B. order-driven market.
C. quote-driven market.
What is the most likely effect on the accounting equation when a company purchases office equipment with cash?
Assets increase,and liabilities increase.
B. There is no effect on the accounting equation.
C. Assets decrease,and owners equity decreases.
Which of the following statements most closely relates to the concept of moneyness?
A. The sum of money the option buyer pays the seller is called the premium.
Both call and put option prices decline as the time to expiration becomes shorter.
C. One would never exercise a call option if the price of the underlying is below the strike price.