When People Take Advantage of Differences in Prices for the Same

question 29

Multiple Choice

When people take advantage of differences in prices for the same good by buying it where it is cheap and selling it where it is expensive, it is known as

• A) net exports.
• B) purchasing power parity.
• C) net capital outflow.
• D) currency appreciation.
• E) arbitrage.

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Definitions:

Plate Tectonics

The scientific theory explaining the movement of the Earth's lithospheric plates and how these movements cause earthquakes, volcanoes, mountain ranges, and oceanic trenches.

Seafloor Spreading

The process by which oceanic crust is formed at mid-ocean ridges and moves outward from ridge crests, driven by tectonic plate movements.

Volcanic Activity

The process by which magma and gases are transferred from the Earth's mantle to its surface, including eruptions, lava flows, and gas emissions.

Converging Plates

The movement of two tectonic plates towards each other, often leading to geological features like mountains, earthquakes, and volcanoes.