The short position in a futures contract is the party that will:
A. deliver a commodity or financial instrument to the buyer at a future date.
B. accept the risk.
C. benefit from increases in price of the underlying asset.
D. suffer the loss.
Answer: A
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The difference between the national debt and a federal budget deficit is
What will be an ideal response?
Using Figure 4.1, suppose that point B represents the optimal mix of output for a society. If market forces cause society to produce and consume at point C, then
A. There is market failure. B. Points A and D are unattainable with the given resources and technology. C. The forces of supply and demand will return society to point B. D. There is government failure.
According to the textbook, of all barriers to entry, the most important are those that are due to
A) ownership of a key input. B) economies of scale. C) government-imposed barriers. D) the Herfindahl-Hirschman Index.
In equilibrium, rate of growth of capital in a simple closed economy (i.e., x = 0 ) is determined primarily by
A) the growth rate of savings. B) the level of saving less expenditures for replacement capital. C) per capita well-being. D) the growth rate of replacement capital.