The Need to Study Economics Would Cease to Exist If

question 18

Multiple Choice

The need to study economics would cease to exist if

• A) the government stopped controlling people's actions.
• B) people were free to make decisions on their own.
• C) people put forth the effort required to attain the goods and services they wanted.
• D) people earned more than they spent.
• E) there were enough resources to produce all the goods and services people would like to obtain.

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Definitions:

Net Position

The difference between the total number of long and short positions that a trader or institution holds in a particular security, currency, or commodity.

Open Interest

The total number of outstanding derivative contracts, such as futures or options, that have not been settled.

Spread Position

In trading, holding a combination of options positions that offset each other, to capitalize on movements in market prices or volatility.

Maturity

The date on which a financial obligation must be repaid or the final due date on which a bond or other debt instrument comes due and the principal must be paid back.