When It Is Possible to Trade Two Separate Currencies for a Common

question 99

Multiple Choice

When it is possible to trade two separate currencies for a common third currency, economists refer to profit opportunities as:

• A) backward arbitrage.
• B) speculation.
• C) triangular arbitrage.
• D) forced equilibrium.

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Definitions:

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from purchasing one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility received from consuming one more unit of a good or service.

Demand Schedule

A demand schedule is a table that lists the quantity of a good that consumers are willing to purchase at various prices.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a certain quantity of a good or service.