Figure 3.1.1 -Refer to Figure 3.1.1 Above. Relative to Market Basket A

question 76

Multiple Choice

Figure 3.1.1
-Refer to Figure 3.1.1 above. Relative to market basket A, which market baskets would compensate for the loss of one good with the gain in the other, so that total utility from any of these baskets would be the same?

• A) B and D
• B) G and E
• C) B and E
• D) Only E

---

Definitions:

Futures Contracts

Standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Silver

A precious metal with high conductivity and reflectivity, used in currency, jewelry, and numerous industrial applications.

Troy Oz.

A unit of measure for weight that is traditionally used for precious metals. One troy ounce is approximately 31.1035 grams.

Put Option Contracts

Financial contracts allowing the holder to sell an asset at a specified price within a fixed time period.