Which of the following statements is true of contracts?
a. They are used only in case of standardized transactions.
b. They protect a seller's investment in the transaction.
c. They allow the concerned parties to benefit from short-term price fluctuations in the market.
d. They reduce the impact of market risk on the transaction as well as economic value in the long run.
B
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Lifetime income is distributed
A) less equally than annual income and less equally than measured wealth. B) less equally than annual income and more equally than measured wealth. C) more equally than annual income and less equally than measured wealth. D) more equally than annual income and more equally than measured wealth.
A binding price floor creates
a. deadweight loss. b. consumer surplus. c. producer surplus. d. deadweight gain.
Suppose Quarto takes 10 years to double the size of its economy. According to the rule of 70, its growth rate is _____
a. 15 percent b. 10 percent c. 7 percent d. 20 percent
A raise in the price of a product causes _____.
(A) A decrease in supply. (B) An increase in demand. (C) A decrease in competition. (D) An increase in competition.