All of the following are roles of a exchange EXCEPT
A) instituting margin requirements on futures contracts.
B) marking to market at the end of each day.
C) eliminate the need for buyers and sellers of futures contracts to be concerned about the creditworthiness of each other.
D) reducing the default risk involving forward contracts.
D
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The fact that a rock star earns $5 million a year while a teacher earns $25,000 annually is most directly an example of an economy answering the ________ part of one of the two big economic questions
A) "when" B) "for whom" C) "how" D) "why"
Which of the statements best describes the difference between economic regulation and social regulation?
A) There are no significant differences between economic and social regulation, social regulation is a more modern way of regulating an economy. B) Economic regulation focuses on output and price; social regulation focuses on improving the quality of life. C) Social regulation focuses on output and price; economic regulation focuses on quality of life issues. D) Social regulation targets industries like transportation, while economic regulation targets utilities.
Economic rent serves
A. no useful function in a modern economy. B. an allocative function by guiding available supplies to the most efficient use. C. a descriptive function by making some wealthier than others, but serves no allocative function. D. only to make the rich richer and the poor poorer.
In the desire to have a celebrity's image protected to prevent it from being used in ways he would not approve, a celebrity's estate
A) will probably not be successful, since there are no laws regulating this kind of use in the United States. B) will have to be granted a patent declaring the celebrity's image a new product, and this will give the estate protection for 7 years. C) can rely on U.S. laws that protect intellectual property rights to prevent the unauthorized use of his image. D) will most likely be more successful in developing countries than in high-income countries, since property regulations are better enforced in developing countries.