Buying a product in one market and selling it in another is called
A) competition.
B) arbitrage.
C) efficiency.
D) comparative advantage.
QUESTION 2Which of the following industries most closely approximates the oligopoly model?
a. dry cleaning
b. fast food
c. automobile manufacturing
d. agricultural produce
QUESTION 3Parties to the contract prefer to keep the actual agreement incomplete when:
a. they have conflicting terms and conditions.
b. they are large in count.
c. the economic value of the contract is low.
d. the cost of negotiation is high.
QUESTION 4People trade because
A) they are able to take advantage of others.
B) government regulates the market.
C) the must do so.
D) they make themselves better off.
QUESTION 5Under which one of the following market structures are sellers most likely to consider the reaction of rival sellers when they set the price of their product?
a. oligopoly
b. perfect competition
c. pure monopoly
d. monopolistic competition
QUESTION 6_____ is a contract that specifies actions to be taken if various situations come to prevail.
a. An insurance policy
b. Contingency
c. Unitization
d. An escalator
QUESTION 7Without contracts, what type of transactions would occur?
A) forward purchases.
B) lateral purchases.
C) spot transactions.
D) side bars.
QUESTION 8An example of an oligopoly is:
a. the book industry.
b. the music CD industry.
c. the automobile industry.
d. the market for soybeans.
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