Commodity Contracts 1

question 42

Multiple Choice

Commodity contracts 1.are bought and sold through commodity exchanges
2) are considered to be speculative investments
3) permit investors to take either long or short positions

• A) 1 and 2
• B) 1 and 3
• C) 2 and 3
• D) all of these choices

---

Definitions:

Behavioral Economics

A field of economics that studies the effects of psychological, social, cognitive, and emotional factors on economic decisions.

Utility Maximization

The economic principle that consumers choose to allocate their resources in a way that maximizes their satisfaction or utility.

Economic Agents

Individuals, households, firms, and governments that make decisions about the allocation of resources and interact in markets.

Clear Preferences

The state of having distinct and definite likes or choices, which can be consistently ranked or ordered by an individual or a group.