The notion of opportunity cost allows the measurement of trade-offs.
Answer the following statement true (T) or false (F)
True
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A stronger U.S. dollar in world exchange markets means that
A) foreigners sell the dollars that they have. B) a dollar buys more units of foreign currency than it could before. C) a dollar buys less units of foreign currency than it could before. D) a dollar buys the same amount of foreign currency than it could before, with gold backing up the value of the dollar.
With respect to labor supply, the income effect leads a person to want to work more in order to raise his or her income
Indicate whether the statement is true or false
The demand for a good becomes more inelastic
a. as more close substitutes for it become available. b. as it is increasingly viewed as a luxury good. c. as the market is defined more broadly. d. the longer the time horizon.
Which of the following is a property of a forward contract?
a. In a forward contract cash is traded for immediate delivery. b. The buyer of a forward contract is "short" while the seller of the contract is "long". c. In a forward contract, the seller must own the commodity which is being traded. d. The value of future delivery depends on the market price of the commodity.