The primary use of derivative contracts is:
A. for IRA and other pension plans since they only have value well into the future.
B. to add to the profits an investor obtains through information asymmetry.
C. to shift risk among investors.
D. for investors seeking a greater return by taking greater risk.
Answer: C
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Use the figure above to answer this question. Mary is the only veterinarian in a small town and rents a space for her practice. If Mary's landlord decided to charge ________ per hour in rent, Mary would ________
A) $20 more; earn $0 economic profit B) $20 more; still earn an economic profit because she is a monopolist C) $30 more; earn $0 economic profit D) $10 less; raise her prices and earn a higher profit E) $30 more; operate on the inelastic portion of her demand curve
What is a normal profit?
What will be an ideal response?
One of the strongest motivations for holding the Bretton Woods Conference was to design new international institutions that would
A) contain communism. B) help countries avoid the mistakes of the 1920s and 1930s. C) provide a collective defense security for Western Europe and North America. D) ensure that world prices were not rising too rapidly. E) create a single currency in Western Europe.
The inflation rate is the absolute change in the price level from the previous period
a. True b. False Indicate whether the statement is true or false