Which of the following statements about the presence of speculators in futures markets is correct?
A) Their main objective is to reduce their exposure to risk.
B) They aid hedgers by increasing the liquidity in futures markets.
C) They make it difficult for hedgers to find someone to take the opposite side of their positions.
D) Once a futures market participant is known to be a speculator he or she is no longer allowed to participate in the market.
B
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Technological progress that increases the expected profit shifts the demand for loanable funds curve
A) leftward and reduces the real interest rate. B) rightward and increases the real interest rate. C) rightward and reduces the real interest rate. D) leftward and increases the real interest rate.
Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the accounting profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
The Federal Reserve considers any business with less than __________ employees to be "small."
A) 10 B) 100 C) 500 D) 1500
Both marginal revenue and marginal revenue product refer to the gains to the firm from employing one additional worker
a. True b. False