​Which of the Following Is True

question 156

Multiple Choice

​Which of the following is true?

• A) ​The futures market is used for both hedging and speculating while the forward market is primarily used for hedging.
• B) ​The futures market is used for both hedging and speculating while the forward market is primarily used for speculating.
• C) ​Both the futures market and the forward market are primarily used for speculating.
• D) ​The futures market is primarily used for hedgingwhile the forward market is used for speculating.

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Definitions:

Elasticity of Product Demand

The degree to which the demand for a product changes in response to a change in its price.

Labor Costs

The total expenditure by businesses for paying their employees, including wages, benefits, and taxes.

Labor-Intensive

A process or industry that requires a large amount of labor relative to capital in its production processes.

Production Techniques

Methods or processes used in the transformation of inputs into outputs in the production of goods or services.