The practice of buying a firm's good in one market at a low price and selling it in another market for a higher price in order to profit from the price difference is known as
a. Predatory pricing
b. Price collusion
c. Arbitrage
d. Mark-up pricing
c
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The level of capital per person would increase if
A) the average saving rate were higher. B) the output-to-capital ratio increased. C) the depreciation rate increased. D) Both A and B.
In a two-player simultaneous game where neither player has a dominant strategy,
A) there is never a Nash equilibrium. B) there is only one Nash equilibrium. C) the actual outcome is unpredictable. D) the actual outcome will not be a Nash equilibrium.
If there is an increase in market demand in a perfectly competitive market, then in the short run
a. there will be no change in the demand curves faced by individual firms in the market b. the demand curves for firms will shift downward c. the demand curves for firms will become more elastic d. market supply will fall e. profits will rise
The PPP index:
A. describes the overall differences in poverty levels between countries. B. describes the overall inequality present in one country compared to another. C. describes the overall difference in prices between countries. D. None of these is true.