The value of a derivative is determined by:
A. the value of the underlying asset.
B. the risk-free rate.
C. the Federal Reserve.
D. SEC regulation.
Answer: A
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The price of jet fuel falls. This fall shifts the
A) demand curve for airplane trips rightward. B) demand curve for airplane trips leftward. C) supply curve of airplane trips rightward. D) supply curve of airplane trips leftward.
Refer to Figure 7-2. With the tariff in place, the United States produces
A) 18 million pounds of coffee. B) 20 million pounds of coffee. C) 26 million pounds of coffee. D) 38 million pounds of coffee.
Public choice theory assumes that government makes optimal policies to respond to the shortcomings of private markets
a. True b. False
Basic research: a. usually has a larger immediate payoff than applied research
b. is more practical than applied research. c. is the search for general knowledge without a specific product or procedure in mind. d. is research done by a firm to market a good. e. is research done by a firm during the production of a good.