Multiple Choice
Suppose that war in the Middle East reduces the supply of oil, forcing the country to economize on oil. How would a central planner optimize the economic problem under this situation?
A) shift oil out of uses for which good substitutes for oil exist
B) supply oil for uses for which good substitutes for oil exist
C) increase demand for oil in all production processes
D) decrease supply for oil in all production processes
Correct Answer:
Verified
Correct Answer:
Verified
Q103: People use futures contracts to:<br>A) increase prices.<br>B)
Q104: Market prices are:<br>A) equal across periods.<br>B) convey
Q105: Speculators:<br>A) serve no important economic function, except
Q106: Factors other than war in the Middle
Q107: Imagine the existence of prediction markets for
Q109: Use the following to answer questions:<br>Figure: Demand
Q110: The Hollywood Stock Exchange is useful for:<br>A)
Q111: Speculation often:<br>A) helps smooth price fluctuations.<br>B) generates
Q112: Futures markets are often good predictors of
Q113: Suppose you have been hired by the