Economics A-Level
Arbitrage
What Arbitrage means in Economics A-Level, as defined for AQA.
Definitions of Arbitrage
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Reference: AQA
Market seepage, where consumers buying at the lower price resell the product to those in the higher-priced market segment, which the firm must prevent.
The reselling of labour, which must be impossible so that a high-wage worker cannot sub-contract their role to a low-wage worker.
Something that administrative costs are needed to prevent when markets are separated.
Topics that use Arbitrage
- Discrimination in the labour market (AQA A-Level)
- Price discrimination (AQA A-Level)
Related terms
- Age discrimination
- Allocative inefficiency
- Business objectives
- Consumer surplus
- Distribution of income
- Elasticity of demand
- Equity
- Gender pay gap
Using Arbitrage in the exam
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