It would require the most money to maintain a margin account when
A. You went short at $4.00 and futures are now at $3.00
B. You went long at $4.00 and futures are now at $3.00
C. You went short at $4.00 and offset your position when futures were at $3.50
D. Either A or B as you need margin money whether you are short or long
Answer: B. You went long at $4.00 and futures are now at $3.00
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The above figure shows the market for finish carpenters in Bozeman. If there is a minimum wage set at $18, which of the following statements is true?
A) Firms' surplus increases with the minimum wage. B) Workers who retain their jobs have their wages rise. C) The market is efficient. D) The quantity supplied of workers is less that quantity demanded. E) Unemployment decreases because firms employ their workers more carefully.
Use the economic way of thinking to complete the following statement: An entrepreneur who owns his own building
A) enjoys the building as a free good. B) sacrifices rental income he could have been earned on the building. C) enjoys lower costs than other entrepreneurs who choose to rent buildings from others. D) enjoys larger economic profits compared to other entrepreneurs who choose to rent buildings from others.