Assuming your local cash price is quoted above the CBOT futures price, an increase in transportation costs in your area would be expected to have what effect on the basis:
A. Widen the basis.
B. Strengthen the basis.
C. No effect on the basis.
D. Not enough information to tell.
Answer: B. Strengthen the basis.
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According to Figure 2.5, the United States civilian employment ratio in June 2013 was ________
A) 66.7% B) 43.8% C) 59% D) 64.0% E) none of the above
In deciding whether to invest in excess capacity in order to deter entry, incumbents should consider all of the following except
a. the order of play in pricing and capacity choice decisions b. the customer sorting pattern c. the sunk cost required to achieve excess capacity d. the joint-profit-maximizing cartel output e. the potential entrant's projected profitability
An example of the command-and-control approach to environmental policy is:
a. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). b. requiring car producers to install new air conditioners that do not use freon. c. allowing coal producers to buy and sell permits to allow CFC emissions. d. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard.
Answer the following statement(s) true (T) or false (F)
1. Proposals have been submitted to phase down HFCs, a CFC substitute, because they are greenhouse gases contributing to climate change. 2. The “greenhouse effect” is a natural phenomenon. 3. Climate change and global warming are exactly the same phenomenon. 4. Oceans and forests act as natural carbon sinks, which can absorb the anthropogenic releases of CO2. 5. Scientific evidence supports the assertion that human activity is adding to the accumulation of greenhouse gases and therefore contributing to global warming.