The difference between the spot contract and a forward contract is that:
a. the former is a flexible price on the currency, and the latter is a fixed price.
b. the former is a contract to be settled immediately, and the latter is a contract to be settled at a future agreed-upon date.
c. the former is a derivative, and the latter is not a derivative.
d. the former has a fixed price but the contract can be settled at a later date, and the latter is a contract to be settled immediately.
Ans: b. the former is a contract to be settled immediately, and the latter is a contract to be settled at a future agreed-upon date.
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Refer to the scenario above. If the economy is currently on F2 and produces Y3 level of output, a leftward shift of the labor demand curve with no change in productivity will cause output to ________
A) increase from Y3 to Y4 B) decline from Y3 to Y1 C) decline from Y3 to Y2 D) increase from Y3 to Y5
A ton of coal purchased by your local utility to burn to make electricity would be best described as
A) an intermediate good. B) a financial asset. C) a used good. D) a final product.
In his 1951 book, Social Choice and Individual Values, Kenneth Arrow used the term "unanimity" to mean
a. A beats B only if everyone prefers A to B. b. if everyone prefers A to B, then A beats B. c. if A beats B and B beats C, then A must best C. d. everyone who is eligible to vote must vote; otherwise, the outcome is invalid.
Private saving is negative when:
A. there is a government budget deficit. B. after-tax income of households and businesses is greater than consumption expenditures. C. after-tax income of households and businesses is less than consumption. D. there is a government budget surplus.