The price of a futures contract represents the price the market expects the commodity to be when the contract expires.
a. true
b. false
Answer: a. true
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Use the following graph, which shows the market for euros, to answer the next question.
Assume the U.S. and European governments adopt a system of flexible exchange rates. If more people in Europe decide to purchase U.S. cars, what effect will this have on the market for euros?
A. The supply of euros will decrease. B. The supply of euros will increase. C. The demand for euros will decrease. D. The demand for euros will increase.
Which of the following is a normative economic statement?
a. The unemployment rate for the United States is currently 5.4 percent. b. The inflation rate in the United States is too high. c. An increase in the price of a good will reduce the amount purchased. d. Higher profits in an industry will attract more entrepreneurs into the industry.
The highest Herfindahl-Hirschman Index
A. is in Industry X.
B. is in Industry Y.
C. is in Industry Z.
D. cannot be determined.
The Lorenz curve would be a diagonal line if income were distributed equally.
Answer the following statement true (T) or false (F)