Options traded on exchanges are known as:
A) listed options
B) exchange traded options
C) call options
D) put options
A
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Use the figure below to answer the following question.
If a price ceiling in this market is set at P1, then deadweight loss equals area
A. f. B. b + d. C. d. D. d + h.
Suppose a new law imposes a tax on all trades of bonds and stock. What is the likely effect on money demand?
A) Money demand declines first, then rises when inflation increases. B) Money demand rises. C) The overall effect is ambiguous. D) Money demand declines.
Samuelson and Solow believed that the Phillips curve
a. implied that low unemployment was associated with low inflation. b. indicated that the aggregate supply and aggregate demand model was incorrect. c. offered policymakers a menu of possible economic outcomes from which to choose. d. All of the above are correct.
Related to the Economics in Practice on page 125: A reduction in the salience of prices should ________ consumer responses to price increases.
A. completely eliminate B. increase C. not change D. reduce