Consider the Trade of a Product Between Two Regions

question 57

Multiple Choice

Consider the trade of a product between two regions.If it is very inexpensive to move the product from one regional market to another,then the

• A)"law of one price" argues that it will sell for approximately the same price in all markets.
• B)price it sells for in every country will depend on the cost of labour in the single low-cost country in which the product was produced.
• C)difference in the price from one market to another will depend on the relative elasticities of supply in the separate markets.
• D)absolute cost of producing the product must be the same in all markets.
• E)production of the world supply will be from the single country with the lowest absolute cost of producing it.

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Definitions:

Psychosocial Crisis

A turning point or critical period in an individual's life where an adjustment is necessary due to a challenge in social, emotional, or psychological development.

Ego Integrity

A sense of wholeness and fulfilled life achievements, typically sought in later adulthood, representing the final stage of Erik Erikson's psychosocial development theory.

Despair

A state of utter hopelessness, where an individual feels a profound sense of loss or defeat.

Generativity

Erikson's stage of psychosocial development in which adults seek to create or nurture things that will outlast them, often by parenting or contributing to society.