The Hypothesis That the Price of Some Given Internationally Traded

question 14

Multiple Choice

The hypothesis that the price of some given internationally traded product in one country will be equal to the price of the same product in some other country is known as

• A)comparative advantage.
• B)gains from trade.
• C)the Big Mac index.
• D)the law of one price.
• E)absolute advantage.

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Definitions:

Methane

A simple hydrocarbon with the formula CH4, it is the main component of natural gas and a potent greenhouse gas.

Lewis Structure

A graphical representation of the electron distribution around atoms and the chemical bonds that hold the atoms together.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Lewis Structure

A diagram that shows the bonding between atoms of a molecule and the lone pairs of electrons that may exist in the molecule.