People who buy futures on the commodity market are
A) increasing, not reducing, their personal risk.
B) reducing, not increasing, their personal risk.
C) either reducing or increasing their personal risk, depending on the circumstances.
D) creating added risk for others in society.
E) showing they are essentially indifferent to risk.
C
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Any long-lasting tool that people use to produce goods and services is called
a. a product b. machinery c. capital d. equipment e. labor assistance
Which of the following observations is true of the principle of comparative advantage?
a. It arises from the absolute cost advantage. b. It helps determine most efficient patterns of production. c. It was advanced by Adam Smith. d. It means producing a good using smaller quantities of resources than others.
If average total cost is $50 and average fixed cost is $15 when output is 20 units, then the firm's total variable cost at that level of output is
A) $1,000. B) $700. C) $300. D) impossible to determine without additional information.
The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recent years opposition to globalization has led to violent protests at meetings of the WTO. One reason for these anti-globalization protests is
A) protesters believe that free trade destroys the distinctive cultures of many countries. B) protesters believe that globalization will result in a return to communism in developing countries. C) protesters object to the loss of intellectual property (such as software programs and movies) that results from foreign trade and investment. D) foreign trade and investment are examples of zero-sum games.