One key difference between options contracts and futures contracts is:
A. in an options contract, the rights belong to one party.
B. in a futures contract, one part has more rights than the other.
C. in a futures contract all rights are held by just one party.
D. with an options contract both parties have equal rights.
Answer: A
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Use the following graph to answer the next question.
In the figure, AD1 and AS1 represent the original aggregate supply and demand curves. If Q1 is full-employment output, then AD2 and AS1 represent a(n) ________.
A. full-employment B. price stability C. expansion D. recession
In the short run, if a firm's total product is increasing: a. its marginal product must be increasing
b. its marginal product must be positive. c. its marginal product could be increasing or decreasing. d. both b. and c. are true.
Economic rents can lead to large wage differentials
a. True b. False Indicate whether the statement is true or false
An elasticity of 2 would be considered
A. elastic. B. inelastic. C. unit elastic. D. undefined.