Unlike in the 1930's, farmers today can insure themselves against price swings that would impact them adversely through the futures market
Indicate whether the statement is true or false
True
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When you make a purchase at a retail store by giving your bank an instruction to transfer funds directly from your bank account to the store's bank account, you have most likely made the purchase using
A) a loan. B) a debit card. C) credit. D) cash.
The Gini coefficient is calculated by measuring the area between:
A. the Lorenz curve and the x-axis. B. the Lorenz curve and the y-axis. C. the line of perfect equality and the Lorenz curve. D. the line of perfect inequality and the Lorenz curve.
If the real interest rate is 5%, the rate of inflation in the United States is 6%, and the rate of inflation in the United Kingdom is 3%, which of the following statements would NOT be true?
A) The nominal rate of interest in the United States would be greater than the nominal interest rate in the United Kingdom. B) The difference between the U.K. and U.S. interest rates is a function of the difference between their inflation rates. C) The nominal rate of interest in the United States and the United Kingdom would be the same because of purchasing power parity. D) Investors would get a higher return on their money in the United States.
Suppose someone offers Max the following gamble: with probability 0.50 he will win $10 and with probability 0.50 he will lose $8. The expected value of this gamble is:
A. $1. B. $2. C. $0. D. $5.