Which of the following terms refers to the process of taking advantage of different prices for a good in different markets?
A)arbitrage
B)absolute advantage
C)capitalism
D)the law of one price

Question

Quizplus · Accepted Answer

Arbitrage is the process of exploiting price differences for a good in different markets. This involves buying the good in the market where it is cheaper and selling it in the market where it is more expensive, resulting in a profit. Absolute advantage refers to a country's ability to produce a good more efficiently than another country, capitalism is an economic system characterized by private ownership and free markets, and the law of one price states that identical goods should have the same price in different markets.

Which of the Following Terms Refers to the Process of Taking