The Establishment of a Futures Market in a Commodity Should

question 54

Multiple Choice

The establishment of a futures market in a commodity should not have a major impact on spot prices because

• A) the futures market is small relative to the spot market.
• B) the futures market is illiquid.
• C) futures are a zero-sum game.
• D) the futures market is large relative to the spot market.
• E) most futures contracts do not take delivery.

Explain the function and effects of education in the labor market according to different theories.

Analyze the role of minimum wage policies and their effect on employment and unemployment.

Understand the role and impact of unions in determining wages.

Recognize the conditions under which superstars emerge in different markets.

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Definitions:

Compensation

Payment, either in cash or kind, provided to someone in exchange for their services or to compensate for injury or loss.

Coverdell Education Savings Account

A tax-advantaged saving account designed to pay for the beneficiary's education expenses, including K-12 and higher education.

Qualified Education Expenses

Expenses required for enrollment or attendance at an educational institution, including tuition, fees, and related costs.

Retirement Plan

A retirement plan refers to financial strategies of saving, investment, and ultimately distribution of money meant to sustain an individual’s standard of living in retirement.