Futures contracts are
A. the same as forward contracts.
B. contracts with standardized price terms.
C. standardized contracts to make or take delivery of commodity at a predetermined place and time.
D. All of the above.
Ans: C. standardized contracts to make or take delivery of commodity at a predetermined place and time.
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A White House proposal to lower business taxes by increasing tax deductions is an example of
A) progressive taxation. B) contractionary fiscal policy. C) automatic stabilization. D) expansionary fiscal policy.
One reason that economists usually engage in ________ economic analysis is because the question of fair division of resources is ________ to decide objectively
A) positive; easy B) positive; hard C) normative; easy D) normative; hard
Critics of the World Bank's analysis of East Asian industrial policies argue that
A) even though growth was faster in the non-targeted industries than it was in the targeted ones, the policies were essential to overall economic growth. B) growth was faster in nearly every targeted industries than it was in the non-targeted ones. C) even though growth was the same in the targeted industries as it was in the non-targeted ones, they would have grown slower without the policies. D) growth was slower in the targeted industries; hence the policies did not work. E) measurements of economic growth are invalid and cannot be used to make comparisons between industries.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent and is paid before Albert. If Albert knew how much he
was going to receive before the check arrived, he most likely invested in a. common stock b. preferred stock c. indirect stock ownership d. mutual funds e. low-yield dividends