The buyer of a futures contract
A) assumes the short position.
B) has the obligation to deliver the underlying financial instrument at the specified date.
C) has the obligation to receive the underlying financial instrument at the specified future date.
D) may, at his or her option, deliver or receive the underlying financial instrument at the specified date.
C
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Which of the following have to be true about functions in the duality picture:
A. The expenditure function is homogeneous of degree 1 in prices. B. The compensated demand functions are homogeneous of degree 1 in prices. C. The uncompensated demand functions are homogeneous of degree 1 in prices. D. Both (a) and (b). E. Both (b) and (c). F. Both (a) and (c). G. All of the above. H. None of the above.
The amount that individuals would have been willing to pay, minus the amount that they actually paid, is called:
a. producer surplus. b. consumer surplus. c. total surplus. d. demand surplus.
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.For Pat to earn normal profit, Pat's accounting profit would have to be ________.
A. $50,000 B. $0 C. $15,000 D. $35,000
Exhibit 17-2 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-2, if people behave according to rational expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the price level to move:
A. directly from 100 to 105 and then remain at 105. B. directly from 100 to 110 and then remain at 110. C. from 100 to 105 initially and then eventually move back to 100. D. from 100 to 105 initially and then eventually move to 110.