Gasoline Is Considered a Final Good If It Is Sold

question 44

Multiple Choice

Gasoline is considered a final good if it is sold by a

• A)gasoline station to a bus company that operates a bus route between San Francisco and Los Angeles.
• B)pipeline operator to a gasoline station in San Francisco.
• C)gasoline station to a motorist in Los Angeles.
• D)All of the above are correct.

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Definitions:

Noise Trader

An investor who makes buy and sell decisions without the use of fundamental data, contributing to market volatility.

Aversion to Ambiguity

Aversion to ambiguity refers to an individual's tendency to avoid choices or decisions when information is unclear or incomplete, reflecting a preference for certainty.

Limits to Arbitrage

The constraints that prevent traders from exploiting price discrepancies in financial markets, thus allowing inefficiencies to persist longer than they would otherwise.

Trading Volume

It denotes the total number of shares or contracts traded for a specific security or market during a given period.