You own 10000 bu of wheat in Chicago. You would make the greatest loss if which of the following occurred very quickly?
A. The wheat was hedged and cash price rose $0.50/bu while your basis weakened by $0.15/bu
B. The wheat was unhedged and cash price fell by $0.10/bu
C. The wheat was hedged and cash price fell $1.00/bu and your basis strengthened by $0.15/bu
D. There were no gains in any of the above
Ans: A. The wheat was hedged and cash price rose $0.50/bu while your basis weakened by $0.15/bu
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When Crest claims that its toothpaste product whitens teeth more than the products of its competitors, Crest is practicing
A) product differentiation. B) libel. C) marginal revenue pricing. D) marginal cost pricing.
When the government wants to spend money
a. current consumption will fall only if the government borrows. b. current consumption will fall only if the government raises taxes. c. current consumption will fall if the government borrows or raises taxes. d. current consumption will not be affected.
About ____ of the world's population subsists on no more than $2 a day.
A. one tenth. B. one quarter. C. one third. D. one half.
Figure 2-2
Assume that U.S. agricultural land is used either to raise cattle for beef or to grow wheat. represents the production possibility frontier for beef and wheat. Production at point H is
a.
unattainable given currently available technology and resources
b.
attainable by more fully employing already available resources
c.
attainable by using better technology which is already available
d.
attainable if beef production drops to zero
e.
attainable if all available resources are used to produce wheat