On Commodity Exchange A, It Is Possible to Buy and Sell

question 71

Multiple Choice

On Commodity Exchange A, it is possible to buy and sell crude oil at $116 per barrel, while on Commodity Exchange B crude oil can be bought and sold at $117 per barrel. If there are transaction costs of 1% when buying or selling on either exchange, what is the net effect of buying a barrel of oil on Exchange A and selling it on Exchange B?

• A) -$1.33
• B) -$0.67
• C) $1.06
• D) $1.60

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Definitions:

Raised Without Love

Refers to the developmental consequences and psychological impacts of growing up in an environment lacking emotional warmth, affection, or parental love.

Psychosexual Stages

Freud's theory of five developmental stages (oral, anal, phallic, latency, and genital) that children pass through, each characterized by sexual pleasure in parts of the body.

Last Stage

This can refer to the final phase in a process or sequence, such as the last stage of a life cycle, or the concluding part of a theatrical production.

Genital Stage

The final stage in Freud’s psychosexual stages; from puberty on, sexual urges are allowed back into consciousness and the individual moves toward adult social and sexual behavior.