Arbitrage occurs when an entity purchases a good in the lower priced market and sells it at the same time in the highed priced market. The existance of trade costs would ___ opportunites of abitrage
a) lower
b) not affect
c) increase
d) completly eliminate
Answer: a) lower
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Use the following graph to answer the next question.
In the diagram, Qf is the full-employment output. If the economy's present aggregate demand curve is AD2,
A. the most appropriate fiscal policy is a reduction in government purchases or an increase of taxes. B. the most appropriate fiscal policy is an increase in government purchases or a reduction of taxes. C. the government should undertake neither an expansionary nor a contractionary fiscal policy. D. the economy is achieving its maximum possible output.
The gross domestic product of a small country which has a population of 200,000 is $56,000,000. The income per capita of the country is ________
A) $280 B) $200 C) $50 D) $100
Conspiracies to fix prices are:
A. illegal under the Clayton Act. B. illegal under the Celler-Kefauver Act. C. per se violations of the antitrust laws. D. more tolerated by government today than two or three decades ago.
Which of the following is an example of spending on factors of production in the circular flow model?
A) Carolina has her nails done before her 20th high school class reunion. B) Giorgio buys snow cones for his youth soccer team after each game. C) Stevie trades in his old cell phone for a newer model. D) Arlisha purchases a cotton candy machine for her concession stand at the state fair.