Options are popular because of all of the following EXCEPT:
A. they offer opportunities for high leverage.
B. stock prices are volatile.
C. they offer a tool to transfer risk.
D. they present a tool to limit losses but also limit gains.
Answer: D
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The measure of the benefit you get from consuming the next cup of coffee is your
A) marginal utility of coffee. B) total utility from coffee. C) total utility per dollar spent on coffee. D) total utility from coffee when you are at your consumer equilibrium.
The fraction of each added dollar of disposable income that is used for consumption is called the:
a. average propensity to consumer (APC). b. autonomous consumption rate (ACR). c. marginal consumption propensity (MCP). d. marginal propensity to consume (MPC).
The term "fiscal policy" refers to
A. the use of tax changes to make the distribution of personal income more equitable. B. changes in the levels of government spending and taxation for the purpose of stabilizing the economy. C. changes in the level of government spending. D. the use of taxes and transfer payments to make the distribution of after-tax income more equitable.
________ is a market structure where only one firm provides a good or service that has no close substitutes
A) Oligopoly B) Monopoly C) Perfect competition D) Monopolistic competition