Comparing an option to a futures contract it would be correct to say:
A. an option contract carries more risk than the futures contract.
B. the risk involved in each is equal.
C. a futures contract carries more risk than the option contract.
D. neither involves risk; they are tools to eliminate risk.
Answer: C
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The antitrust legislation that made it illegal for a firm to buy a competitor's voting stock was the
a. Sherman Antitrust Act b. Cellar-Kefauver Act c. FTC Act d. Robinson-Patman Act e. Clayton Act
"Government should not use price controls" is an example of:
A. Marshallian economics. B. normative economics. C. the art of economics. D. positive economics.
How can economists be confident that the pill itself is responsible for the increases in female labor force participation?
A. States that legalized the pill earlier also had earlier increases in female labor force participation. B. Starting from 1960, the year the pill was approved for sale, female labor force participation has been rising. C. States that legalized different versions of the pill had different patterns of female labor force participation. D. It seems to be common sense that delaying childbearing would increase labor force participation.
In the equation of exchange, the concept that provides the link between M and PY is called
A) the velocity of money. B) aggregate demand. C) aggregate supply. D) the money multiplier.