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Economics

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1.Find someone you know, perhaps a neighbor or family member, who is much older than you and can remember how prices were different decades ago in the past. The older the person you speak with the better, as long as they have a good memory about how prices were different and what a dollar could buy. Ask them these questions: 1. Do you have specific memory of a time in the past when the price of something was very different from today? 2. What year was it? 3. What was the good or service, and what was it's price? 4. In general, do you remember all prices being different back then from how they are today? 5. What kinds of goods could a standard unit of money, say $5 buy back then? 6. Do you think we are better off now or worse off, considering the change in prices?

2.The table below shows economic activity for a tiny country. Using the expenditure approach determine the following. Activity Families buy groceries Electronics company sells HD projectors to households Personal trainer gives a Zumba class Custard stand sells pistachio ice cream Police department buys new cars Mayor leads creation of a new budget for education Elevator-construction company builds a new factory Local businessperson purchases corn from Mexico Sports-gear company sells hockey gloves to Canadian team Bike store sells five used carbon-fiber bikes Local stockbroker executes trades for clients Total Value (dollars) 600,000 100,000 5,000 2,000 500,000 300,000 600,000 400,000 200,000 200,000 2,000,000 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign front of those numbers. a. Consumption = $707000 b. Investment = $ 260000 c. Government purchases - 800000 d. Net exports - $ 200000 e. GDP = $ 390700C

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Question: Future markets were developed to...

Answer options:

a. create market liquidity

b. standardize transactions to eliminate counterparty risks

c. connect commodity consumers and producers

d. provide consumers with a place to buy commodities