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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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.
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.