The owner of a call option can buy a futures contract at the premium price.

a. true
b. false


Ans: b. false

Economics

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The relative price of a good is

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International free trade always hurts the nations that run deficits, and benefits the nations that run surpluses

Indicate whether the statement is true or false

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A pure private good is _____ and _____

a. nonexcludable; private in consumption b. excludable; private in consumption c. excludable; collective in consumption d. nonexcludable; collective in consumption

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The above figure shows supply and demand curves for milk. If amount Q2 is produced in the market,

A) producer surplus is maximized. B) consumer surplus is minimized. C) a deadweight loss is generated. D) All of the above.

Economics