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.
D
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Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. 
In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A. aggression; cooperation B. cooperation; cooperation C. cooperation; aggression D. aggression; aggression
Economic analysis requires us to combine:
A. unlimited resources with limited wants. B. theory with observations. C. developed and developing nations. D. republicans and democrats.
If a good is produced up to the point where marginal social benefit equals marginal social cost, then:
a. social welfare is maximized. b. the good is overproduced and the market is inefficient. c. firms are earning zero profits. d. all externalities have been eliminated.
Which of the following conditions define a perfectly competitive market?
a. The transaction costs are very high. b. Information is available to participants at a high cost. c. The product is homogenous. d. There are limited number of buyers and sellers.