Why Would a Corn Farmer,who Maintains a Short Futures Contract

question 18

Essay

Why would a corn farmer,who maintains a short futures contract after harvesting and selling her crop,be considered a speculator?

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Definitions:

Proportional Tax

A tax system where the tax rate remains constant regardless of the amount subject to taxation.

Vertical Equity

A principle of fairness in taxation that dictates taxpayers with a greater ability to pay should contribute more in taxes.

Cardio-Vascular Diseases

A class of diseases that involve the heart or blood vessels, including coronary artery disease, hypertension, and stroke.

Fried Foods Tax

A hypothetical or proposed tax imposed on products with high levels of fried content to discourage consumption and address health concerns.