Riskless transactions to take advantage of profit opportunities due to a price differential or a yield differential in excess of transaction costs are called ?

Related Mcqs:

1. A firm in perfectly competitive industry is producing 50 units, its profit-maximising quantity. Industry price is £2 and total fixed costs and total variable cost are £25 and £40 respectively. The firm’s economic profit is ?

   A. £35
   B. £15
   C. £30
   D. £60

2. The comparative advantage comes if each trading partners has a product that will bring a better price in another country than it will at home. Which economist proposed the principle of comparative advantage ?

   A. Adam Smith
   B. David Ricardo
   C. David Smith
   D. Adam Ricardo

3. By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?

   A. The prices of trade goods to be lower than when there are no transportation costs
   B. specialization to stop when the production costs of the trading partners equalize
   C. The volume of trade to be less than when there are no transportation costs
   D. The gains from trade to be greater than when there are no transportation costs

4. Monopoly advantage is usually the result of greater opportunities such as ?

   I- access to more economic information than competitors
   II- superior access to training and education
   III- a lower discount of future earnings
   IV- larger firm size

   A. I and II only
   B. II and III only
   C. I, II and III only
   D. I, II, III, and IV

5. Pricing to cover variable costs and some fixed costs as in the case of some automobile distributorships that sell below total costs is typical of which of the following pricing objectives ?

   A. current profit maximization
   B. product quality leadership
   C. Market share leadership
   D. Survival

6. Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?

   A. purchase; decrease
   B. purchase; increase
   C. sell; increase
   D. sell; decrease

7. According to Coase’s theorem when property rights are well defined and legally enforceable and transactions costs are not prohibitive ?

   A. population growth leads to rigid land rights
   B. participants will organize their transactions
   C. violence displacement erosion and poverty are minimized
   D. individuals overuse of the biosphere is curtailed

8. As prices rise, there will be costs of constantly changing price-tags and reprinting price-lists This is called ?

   A. real balance effect
   B. menu costs of inflation
   C. money illusion.
   D. cost-push inflation.

9. Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?

   A. Thomas will pay Roberto between €100 and €150 and Roberto will continue to play loud music
   B. Roberto will pay Thomas €150 and Roberto will continue to play loud music
   C. Thomas will pay Roberto between €100 and €150 and Roberto will stop playing loud music
   D. Roberto will pay Thomas €100 and Roberto will stop playing loud music

10. What is called the excess of purchase price over fair market value of net assets that are acquired under the purchase method of accounting ?

    A. Bonus
    B. Up level
    C. Goodwill
    D. Upgradation