Use the Following to Answer Question(s): Production Possibilities in Alphaland

question 32

Multiple Choice

Use the following to answer question(s) : Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Before trade, computer producers in Alphaland could exchange _______ computer(s) for _______ car(s) .

• A) 1; 1/3
• B) 1; 1
• C) 2; 1
• D) 2; 2

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Definitions:

Futures Price

The agreed-upon price for the underlying asset in a futures contract to be paid at a future date.

Short Position

The futures trader committing to deliver the underlying asset.

S&P 500 Futures

Financial contracts that speculate on the future value of the S&P 500 index, allowing investors to predict and hedge against market movements.

Position

An investment holding or the amount of a particular security, commodity, or currency that an investor owns or has contracted to buy or sell.