Futures Markets Are Often Good Predictors of What Will Happen

question 112

Multiple Choice

Futures markets are often good predictors of what will happen to the price of goods in the future because:

• A) speculators typically have better information than consumers.
• B) the markets are more complete.
• C) speculators have an incentive to "get it right" because their own money is on the line.
• D) the markets are highly regulated.

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Definitions:

Cellular Respiration

The process by which cells convert glucose and oxygen into ATP, releasing carbon dioxide and water.

Inspiration

Act of taking air into the lungs; inhalation.

Gases Exchange

The process of oxygen and carbon dioxide moving between the bloodstream and the lungs in animals, and the atmosphere and cells in plants.

Diffusion

The process by which molecules spread from areas of high concentration to areas of low concentration, often leading to equilibrium.