Arbitrage means seeking profit by
A) buying high and selling low.
B) buying low and selling high.
C) either of the above.
D) neither of the above.
B
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If a legal ceiling price causes the quantity of a good demanded to be greater than the quantity supplied
A) competition among both buyers and sellers is prevented. B) competition among buyers is prevented. C) competition among sellers is prevented. D) competition among buyers will raise the nonmonetary costs of obtaining the good.
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is an increase in saving:
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate falls and the quantity per time period falls. d. The real risk-free interest rate falls and the quantity per time period is uncertain. e. The real risk-free interest rate falls and the quantity per time period rises.
In the long run, import quotas increase net exports
a. True b. False Indicate whether the statement is true or false
The typical firm in the US economy
a. has some degree of market power. b. sells its product for a price that is equal to the marginal cost of producing the last unit. c. is perfectly competitive. d. is a monopoly.