With a futures contract:
A. payment is made when the contract is created.
B. the short position agrees to purchase the underlying asset.
C. no payment is made until the settlement date.
D. the risk is eliminated for both parties.
Answer: C
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Under monopolistic competition ________
A) many goods and services are not standardized B) prices adjust slowly to equilibrium C) even if there is substantial competition in the market, some firms can set prices D) all of the above E) none of the above
In the "Prisoners' Dilemma" game: a. When the prisoners follow their dominant strategy and confess, both will be better off than if both had remained silent. b. a player would be better off if he did not confess and the other player confessed
c. a player would be better off if he confessed when the other player also confessed, but not if the other player did not confess. d. None of the above is true.
"Employment fell last month to its lowest level in the last six years" is an example of: a. the fallacy of composition. b. positive economics
c. normative economics. d. none of the above
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30