Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for rice. What happens in this market if buyers expect the price of rice to fall?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
D
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Refer to Figure 18.4. With an import ban, what is the equilibrium quantity of gloves in Duckland?
A) 100 B) 80 C) 60 D) 40
If you buy a put option on treasury futures at 110, and at expiration the market price is 115, the ________ will ________ exercised
A) call; be B) put; be C) call; not be D) put; not be
What does it mean when a country’s exchange rate weakens?
a. Its currency appreciates. b. Its currency gains in value. c. Its currency falls in value. d. Its currency buys more imports.
The existence of economic losses induces firms to:
A. enter an industry, which shifts the market supply curve to the left and decreases market price. B. enter an industry, which shifts the market supply curve to the right and decreases market price. C. exit an industry, which shifts the market supply curve to the right and decreases market price. D. exit an industry, which shifts the market supply curve to the left and increases market price.