An option allowing the holder to buy an asset in the future is a
A) put option.
B) call option.
C) swap.
D) forward contract.
B
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The basic cause of deadweight losses from the existence of common resources and externalities is
A) the use of a market system to deal with scarcity. B) the self-interested rationality of human beings. C) the absence of government intervention. D) a lack of clearly defined and enforceable property rights.
A firm combines two resources, A and B, to produce an output Q. Their respective marginal revenue products are $30 and $21. A costs $15 a unit and B $7 a unit. To reduce the cost of Q:
A. More B and less A should be used B. More A and less B should be used C. More of both resources should be used D. Less of both resources should be used
The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot Pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, the price per pillow is
A) $70. B) $60. C) $40. D) $100. E) $30.
How does an expansionary monetary policy affect aggregate expenditures according to the bank lending channel?
What will be an ideal response?