Financial institutions use futures contracts as a means of
A) risk management.
B) expanding capital.
C) minimizing taxes.
D) increasing assets.
A
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Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii
B. i and ii
C. Only iii
D. i and iii
E. Only i
Use the aggregate expenditures model and assume an economy is in equilibrium at $6 trillion which is $500 billion below full-employment GDP. If the marginal propensity to consume (MPC) is 0.75, full-employment GDP can be reached if government spending:
a. increases by $75 billion. b. increases by $125 billion. c. increases by $500 billion. d. is held constant.
A contract that makes a manager's salary dependent on total profit would be a type of incentive-compatible contract.
Answer the following statement true (T) or false (F)
Use the above table. Based on the information in the table, artisan bread is a(n)
A. inferior good. B. negative good. C. necessary good. D. normal good.