What action did the owner of the position illustrated above take in the futures or options market?
A. Buy a futures
B. Sell a call option on futures
C. Sell a futures
D. Buy a put option on futures
Answer: C. Sell a futures
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On a linear demand curve, the lower the price
A) the less elastic is demand. B) the more elastic is demand. C) the elasticity equals -1. D) the elasticity equals zero.
Graphically, a firm's total profit equals:
a. the distance between the firm's marginal revenue and marginal cost curves. b. the distance between the firm's demand and supply curves c. the distance between the firm's total revenue and total cost curves. d. the distance between the average revenue and marginal revenue curves.
The Central Bank of Wiknam decreases the money supply at the same time the Parliament of Wiknam repeals a new investment tax credit. Which of these policies shifts aggregate-demand curve to the left?
a) the investment tax credit repeal but not the money supply decrease b) the money supply decrease but not the investment tax credit repeal c) both the money supply decrease and the investment tax credit repeal d) neither the investment tax credit repeal nor the money supply decrease
Which of the following is not an argument used by economists and policymakers who are in favor of moving toward greater government involvement in health care?
A) The increased competition that results from market-based reforms would reduce health care costs and increase economic efficiency. B) A single-payer system would reduce the paperwork caused by the current system. C) The current Medicare system has had lower administrative costs than have private health insurance companies. D) The systems in most other high-income countries have lower levels of health care spending per person which still providing good health outcomes.