One Difference Between Arbitrageurs and Speculators Is That

question 52

Multiple Choice

One difference between arbitrageurs and speculators is that

• A)arbitrageurs buy and sell foreign exchange; speculators do not
• B)speculators only buy foreign exchange but do not sell it
• C)arbitrageurs take more risks than do speculators
• D)speculators take more risks than do arbitrageurs
• E)arbitrageurs buy foreign exchange in the hope that its value will increase

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Definitions:

Comparative Advantage

A principle that states a country should produce and export goods for which it has a lower opportunity cost compared to other countries.

Allocate Resources

The process of distributing available resources among various projects or business units.

Maximize Output

Involves strategies or actions by a firm to produce as much as possible, often while considering constraints like resources, technology, and market demand.

Comparative Advantage

The capability to produce a particular good or service more efficiently than other producers, allowing for trade benefits.