A speculator may choose to buy a call option because
A) the possible gain is greater than with a futures contract.
B) the potential loss on the call is limited to the premium, while the potential loss is unlimited with a futures contract.
C) the possible gain with the option is great than the possible gain from buying the underlying stock itself.
D) calls eliminate the risk of loss so a speculator can lose nothing or just make a gain.
B
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President Franklin D. Roosevelt's first action regarding the run on banks was to
(a) close all banks. (b) increase the money supply. (c) prohibit bank foreclosures. (d) provide federal guarantees to depositors.
The first union to organize workers across skills, industries, and regions was the
a. Knights of Labor b. Knights of Columbus c. American Federation of Labor d. Congress of Industrial Organizations e. Taft-Hartley
According to a new Keynesian theorist, a correctly anticipated increase in aggregate demand will
A) cause the price level to increase by a greater amount in the short run than what a new classical rational expectations theorist would predict. B) cause the price level to increase by a smaller amount in the short run than what a new classical rational expectations theorist would predict. C) cause the price level to increase by the same amount in the short run that a new classical rational expectations theorist would predict. D) leave the price level unchanged in the short run, but Real GDP will increase more than what a new classical theorist would predict. E) leave the price level unchanged in the short run, but Real GDP will increase less than what a new classical theorist would predict.
Based on the demand curves for perfectly competitive firms and monopolists, the monopolist loses the profit in area C when it ______.
a. raises prices by one more unit
b. increases output by one more unit
c. sells one more unit at the same price
d. sells one less unit at the same price