One difference between arbitrageurs and speculators is that
a. arbitrageurs buy and sell foreign exchange; speculators do not
b. speculators only buy foreign exchange but do not sell it
c. arbitrageurs take more risks than do speculators
d. speculators take more risks than do arbitrageurs
e. arbitrageurs buy foreign exchange in the hope that its value will increase
D
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A public recreation area that has become unpleasantly crowded is exhibiting a negative externality that is frequently associated with:
A. bargaining. B. Pigouvian policies. C. public goods. D. common property resources.
When a perfectly competitive market has fully adjusted to demand and supply conditions, all of the following are true except:
A) P = MC. B) P = the minimum of SRATC. C) P = the minimum of LRAC. D) P = the minimum of AVC.
The product approach to calculating GDP
A) adds together the market values of final goods and services produced by domestic and foreign-owned factors of production within the nation in some time period. B) includes the market value of goods and services produced by households for their own consumption but excludes the value of the underground economy. C) is superior to the income approach because, unlike the income approach, it gives us the real value of output. D) adds together the market values of final goods, intermediate goods, and goods added to inventories.
Someone who does not contribute toward covering the cost of a good he desires, yet cannot be excluded from receiving the good, is called a free rider
a. True b. False Indicate whether the statement is true or false