A speculator who incorrectly anticipates a major decline in next year's harvest of some agricultural commodity
A) profits at the expense of consumers.
B) profits at the expense of producers.
C) sustains losses and increase price variation from this year to next.
D) sustains losses but reduce price variation from this year to next.
C
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Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire grou
A) irrational behavior. B) free riding. C) Pareto inefficiency. D) disequilibrium.
The above figure shows the market for steel ingots. What is the change in externality cost if the market switches from competitive equilibrium to social optimum?
A) a + b B) b + c C) c D) a + b + c
Which of the following is not correct?
a. There is a greater reduction in risk by increasing the number of stocks in a portfolio from 1 to 10, than by increasing it from 100 to 120 stocks. b. The historical rate of return on stocks has been about 5 percentage points higher than the historical rate of return on bonds. c. Stock in an industry that is very sensitive to economic conditions is likely to have a higher average return than stock in an industry that is not so sensitive to economic conditions. d. If you had information about a corporation that no one else had, you could earn a very high rate of return. This contradicts the efficient market hypothesis.
In 2011 the largest percentage of federal government spending was on
a. national defense. The largest source of federal revenues was from corporate income taxes. b. health. The largest source of federal revenues was from individual income taxes. c. income security. The largest source of federal revenues was from corporate income taxes. d. income security. The largest source of federal revenues was from individual income taxes.