If the Price of a Futures Contract Increases,then

question 69

Multiple Choice

If the price of a futures contract increases,then

• A) the exchange will collect the amount of the increase from the seller of the contract and transfer it to the account of the buyer of the contract.
• B) the exchange will collect the amount of the increase from the buyer of the contract and transfer it to the account of the seller of the contract.
• C) the exchange will collect the amount of the increase from both the buyer and the seller and place it in an escrow account until the delivery date.
• D) the additional funds will not be required from either the buyer or the seller until the delivery date.

Analyze the role of collusion and cartels in establishing monopoly-like conditions in markets.

Understand the concept of marginal revenue and how to calculate it from a given demand schedule.

Recognize different types of monopolies and understand the reasons why certain monopolies, such as natural monopolies, are more economically efficient when undivided.

Identify and understand barriers to entry in a market, including government franchises, patents, economies of scale, and the ownership of a scarce resource.

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Definitions:

Fishing Quotas

Regulatory limits on the amount or type of fish that can be caught within a certain period to prevent overfishing and sustain fish populations.

Federal Government

The national government of a federated state, which holds the highest level of authority in the country, responsible for national defense, foreign policy, and other matters of national importance.

Park Managers

Individuals responsible for overseeing the operations, maintenance, and administrative functions of parks to ensure they meet the needs of visitors and conserve natural resources.

Visitor Desires

The interests and preferences of individuals visiting a particular place or event, which can significantly influence their behaviors and choices.