Options do not eliminate the risks but they give people choices about which risks they will hold and help to price those risks they might wish to assign to others
Indicate whether the statement is true or false
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In 2007, interest rates in Germany were 4.7 percent while the inflation rate was 1.7 percent. In 2008, interest rates increased to 5.3 percent and the inflation rate increased to 2.0. As a result, there is
A) a leftward shift in Germany's demand for money curve. B) a downward movement along Germany's demand for money curve. C) a rightward shift in Germany's money supply curve. D) an upward movement along Germany's demand for money curve.
If lower-income households spend a greater share of their income on cigarettes than do higher-income households, then a tax that raises the price of cigarettes will
A) cause lower-income households to incur a greater loss of consumer surplus than that incurred by higher-income households. B) cause higher-income households to incur a greater loss of consumer surplus than that incurred by lower-income households. C) raise consumer surplus among higher-income households. D) cause consumer surplus to decline among smokers, but the relative impact cannot be determined from the given information.
The European Union crisis was caused by:
a. Too little state spending b. The fact that all EU members are on the euro c. industrial planning d. excessive government spending by weak economies e. all of the above
The availability year-round in U.S. supermarkets of produce from Central America reflects which of the following economic concepts?
a. scarcity b. productivity c. specialization d. competition