Suppose technical change makes it cheaper for cable television suppliers to supply their service. The capture theory would predict that the regulators would
A) allow the firms to capture the savings and would lower price only if the firms asked them to.
B) force the firms to pass the savings on to consumers in the form of lower prices.
C) force the firms to pass the savings on to consumers in the form of better service.
D) force the firms to pass some of the savings on to consumers and permit them to keep some of the savings for themselves.
A
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Rank the following items in terms of most liquid to least liquid.
A) checkable deposits, cash, an office building your father owns B) cash, credit card, money market mutual funds, checkable deposits C) cash, checkable deposits, savings deposits, an office building your father owns D) cash, Microsoft stock certificates you own, checkable deposits
A put option is a contract
A. that gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B. that gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C. in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D. that gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.