Which of the following is true of arbitrage?
A) It is limited to manufacturing.
B) It involves searching for deals on production factors across geographic boundaries.
C) It treats differences across nations as constraints.
D) It involves obtaining land, labor, and capital from domestic markets.

Question

Quizplus · Accepted Answer

Arbitrage involves searching for and exploiting price differences for the same asset or product in different markets. It is not limited to manufacturing (A), does not treat differences across nations merely as constraints (C), and is not confined to obtaining resources from domestic markets (D).

Which of the Following Is True of Arbitrage