A trader that is long in the futures market has purchased a futures contract
a. true
b. false
Ans: a. true
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Input demand is called derived demand because
a. demand for an input is derived from demand for the product or service it produces. b. demand for an input is derived from its availability in the input market. c. demand for the output produced is also derived from consumer demand. d. input demand actually determines how much output is produced.
In the short run, if prices were above equilibrium,
a. excess aggregate demand for goods and services would place downward pressure on prices. b. excess aggregate supply of goods and services would place upward pressure on prices. c. excess aggregate demand for goods and services would place upward pressure on prices. d. excess aggregate supply of goods and services would place downward pressure on prices.
What factors should be considered in determining whether a firm should sell to buyers in a foreign country by exporting from its home country or by setting up local production in the foreign country to produce the products that are sold to the foreign consumers? When identifying these factors, clearly explain how and why they push the decision toward one or the other of the two available choices.
What will be an ideal response?
The decision to go out of business
A. may be made only in the short run. B. may be made only in the long run. C. may be made in either the short run or the long run.