If a purchase contract allows a buyer to accept less than a specified maximum "take" each month, buying a _____ would allow the seller to resell the excess at a _____ price
a. put option; profitable
b. put option; predictable
c. call option; predictable
d. call option; profitable
B
You might also like to view...
As the wage rate rises, the income effect influences workers to choose ________ leisure, and the substitution effect influences workers to choose ________ leisure
A) more; less B) more; more C) less; less D) less; more
Labor is available at a wage of $10. The last worker hired by Cal’s Corn Farm added 20 ears of corn, which Cal has priced at four ears for $1. What advice would you give Cal?
What will be an ideal response?
The term self-interest, as viewed by economists, means that:
a. consumers never pay more for a good simply because it carries a certain designer label. b. only economists are capable of making choices according to rational self-interest. c. people never act in their self-interest until they have perfect information. d. consumers always seek the least expensive option when making a purchase, regardless of individual preferences. e. people make choices that, given the information available, gives them the greatest amount of satisfaction.
If the government increases its efforts to reduce illegal drugs which of the following would explain the possible unintended consequences—an increase in drug-related crimes.
a. More people will commit crimes as a result of the increased drug use b. Tough drug enforcement policies reduce the demand for illegal drugs. c. Drug addicts will have an even greater need for quick cash to support their habits. d. In the short run, both equilibrium quantities and prices will fall in the markets for illegal drugs.