The table below shows how the payoffs to two political candidates depend on whether the candidates run a positive or negative campaign. The payoffs are given in terms of the percentage change in the number of votes received. 
Suppose that the Republican candidate tells the Democratic candidate that he intends to run a positive campaign. The likely result is that:
A. both candidates will run a positive campaign.
B. both candidates will run a negative campaign.
C. the Republican candidate will run a positive campaign, and the Democratic candidate will run a negative campaign.
D. the Republican candidate will run a negative campaign, and the Democratic candidate will run a positive campaign.
Answer: B
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The local banking industry currently has a Herfindahl-Hirschman index (HHI) value of 2175 and two of the competing banks have considered merging. Because the merger would raise the HHI by 25 points, the Federal Trade Commission would likely
A) challenge the merger. B) not challenge the merger. C) allow the merger under the condition that HHI does not rise by more than 25 points as promised. D) allow the merger under the condition that the HHI remain at the premerger level of 2175.
Why is a futures contract considered valuable by both producers and consumers?