Which One of the Following Stock Index Futures Has a Multiplier

question 49

Multiple Choice

Which one of the following stock index futures has a multiplier of $10 times the index value?

• A)Russell 2000
• B)Dow Jones Industrial Average
• C)Nikkei
• D)DAX-30

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Definitions:

Total Product Curve

A graphical representation showing how the total quantity of output changes with variation in the quantity of a single input, holding other inputs constant.

Marginal Returns

The additional output gained by adding one more unit of input, holding all other inputs constant.

Minimum Efficient Scale

The minimum efficient scale is the lowest point of production where a firm can achieve the economies of scale, reducing its cost per unit to the minimum.

Economic Profits

The surplus or profit gained by a firm after subtracting all its costs, including both explicit and implicit costs, from its total revenues.