A Person with a Long Position in a Commodity Futures

question 77

Multiple Choice

A person with a long position in a commodity futures contract wants the price of the commodity to ________.

• A) decrease substantially
• B) increase substantially
• C) remain unchanged
• D) increase or decrease substantially

Comprehend the influence of behavioral sciences on organizational behavior.

Understand the basic concepts of Gross Domestic Product (GDP) and its components.

Differentiate between nominal GDP and real GDP and understand the implications of changes in each.

Comprehend the significance of the GDP deflator and inflation in the economic context.

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Definitions:

Price Elasticity

A gauge of the extent to which the amount of a good that is bought varies in response to alterations in its cost, showing how sensitive purchases are to price adjustments.

Raise Profits

Efforts or strategies implemented by a company aimed at increasing its net earnings or bottom line, through means such as reducing costs, increasing sales, or enhancing productivity.

Two-part Tariff

A pricing strategy that involves a fixed fee plus a variable charge based on the amount of goods or services consumed.

Marginal Cost

The financial outlay for making an additional unit of a good or service.