A futures contract involves counterparty risk and illiquidity
a. true
b. false
Answer: b. false
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According to the economic way of thinking, elected government officials tend to favor
A) contractionary monetary policies. B) contractionary fiscal policies. C) expansionary monetary and fiscal policies. D) monetary and fiscal policies consistent with the public interest.
The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 1575 and two of the competing banks have considered merging. Because the merger would raise the HHI by 215 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger under the condition that HHI does not rise by more than 215 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 1575.
Some Internet companies like Amazon reduce the transaction costs of many purchases by
A) providing misleading information about the quality of products. B) providing information about products and firms that supply those products. C) advertising sales at local discount stores. D) paying its employees low wages.
When oligopolists secretly cooperate for their mutual benefit they are engaging in
a. inclusion b. collusion c. seclusion d. exclusion e. discrimination