In May, Jones thinks the upcoming summer's corn crop will be much lower, and the November corn price will be much higher than most people expect. To act on his belief, Jones would
A) sell November corn futures.
B) buy November corn futures.
C) simultaneously buy and sell November corn futures.
D) profit only by waiting to see if his original conclusion was correct.
B
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If the cross-price elasticity of demand between two goods is -1.2, then the two goods are:
A. substitutes. B. complements. C. inferior. D. elastically demanded.
According to the text, as compared to rich countries, most of the poor countries do not fare well because:
a. they have no oil. b. the people in these countries have limited property rights. c. access to education in these countries is very limited. d. high tariffs in these countries prevent international trade. e. they do not have any natural resources.
Irrespective of whether she is at her optimum, Jenna's valuation of coffee relative to orange juice can be measured by
a. her marginal rate of substitution between coffee and orange juice. b. the price of coffee relative to the price of orange juice. c. the ratio of the quantity of coffee that she buys relative to the quantity of orange juice that she buys. d. the ratio of the quantity of coffee supplied in the market to the quantity of orange juice supplied in the market.
Chrissy and Marvin are competitors in a local market and each is trying to decide if it is worthwhile to advertise. If both of them advertise, each will earn a profit of $10,000 . If neither of them advertise, each will earn a profit of $20,000 . If one advertises and the other doesn't, then the one who advertises will earn a profit of $30,000 and the other will earn $14,000 . To earn the highest
profit, Chrissy a. should advertise, and she will earn $10,000. b. should advertise, and she will earn $30,000. c. should not advertise, and she will earn 20,000. d. has no dominant strategy.