Define a variable and give two examples that would apply to economics
What will be an ideal response?
A variable is a measure that can change from time to time or from observation to observation. Income is a variable—it has different values for different people and different values for the same person at different times. The rental price of a movie on a DVD is a variable; it has different values at different stores and at different times.
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Which of the following is NOT an example of a financial derivative?
A) forwards B) bonds C) swaps D) futures E) options
For this question, assume that firms experience a reduction in sales. We would expect that this decrease in sales will cause
A) an increase in profit per unit of capital. B) a decrease in profit per unit of capital. C) no change in profit per unit of capital. D) ambiguous effects on profit per unit of capital. E) none of the above