Futures markets for agricultural commodities allow to reduce
A. price and profit uncertainty in farming.
B. price uncertainty in farming.
C. price and output uncertainty in farming.
D. price, output, and profit uncertainty in farming.
Ans: B. price uncertainty in farming.
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Refer to Budget Lines. If the consumer purchased basket D last year and basket A this year,
a. They are definitely better off this year than last year.
b. They were definitely better off last year than this year.
c. They could be equally well off in the two years.
d. It is impossible to tell wether they are better or worse off, even if we knew the person's preferences.
A possible reason to impose a protectionist policy such as a tariff is to
A) slow domestic production. B) protect domestic workers from foreign competition. C) aid other nations in developing their own industries. D) increase the welfare of domestic consumers.
If the cross elasticity of demand between good A and good B is negative, then a decrease in the price of good A results in
A) an increase in the demand for good B. B) a decrease in the demand for good B. C) a movement downward along the demand curve for good B. D) an increase in the supply of good B. E) a decrease in the supply of good B.
The longer you have to wait to receive a payment,
A) the lower the interest rate you will charge on the payment. B) the more you are willing to discount the payment. C) the greater value it will have to you. D) the less value it will have to you.