An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a
A) call option.
B) put option.
C) American option.
D) European option.
B
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Because cartel firms produce a quantity that ________ maximize their own firm's profits, there is an incentive to ________.
A) does; produce more than the agreed upon amount B) does not; produce less than the agreed upon amount C) does; act in self-interest D) does not; act in self-interest
Some economists see monopolies as inevitable, but not necessarily bad. They recommend a policy of
a. regulating prices b. nationalization c. laissez-faire d. encouraging concentration e. splitting up the monopoly
Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. A decrease in income would cause the market to move from Point B on demand curve D2 to
A. demand curve D1. B. demand curve D3. C. Point A on demand curve D2. D. Point C on demand curve D2.
In general, as wages go up:
A. people are willing to work less. B. the opportunity cost of leisure goes down. C. people will always work more. D. the opportunity cost of leisure goes up.