Derivatives are securities that derive their values from the values of underlying investments.
Answer the following statement true (T) or false (F)
True
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Give some examples of opportunity cost.
What will be an ideal response?
Exhibit 3A-2 Comparison of Market Efficiency and Deadweight Loss
As shown in Exhibit 3A-2, if the market is in equilibrium, then total surplus is represented by
A. BGHF B. CBEFDA C. CBEA D. AEFD
Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does NOT change the oil himself?
A. The opportunity cost of changing oil is higher for Tiger Woods than for the garage mechanic. B. Tiger Woods has an absolute advantage in changing oil. C. There is no opportunity cost for the garage mechanic to change oil. D. Tiger Woods has a comparative advantage in changing oil.
In the above table, saving is positive when real disposable income is greater than
A. $100. B. $300. C. $500. D. zero.