The Hypothesis That the Price of Some Given Internationally Traded

question 18

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

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Definitions:

Butter

A dairy product made from churning milk or cream, commonly used as a spread or cooking ingredient, known for its rich flavor and high-fat content.

Thiamine

A vitamin belonging to the B complex (Vitamin B1), essential for glucose metabolism and plays a key role in nerve, muscle, and heart function.

Primary Source

Original documents, materials, or evidence used in research, providing direct or firsthand testimony or insight into a topic.

Leafy Vegetables

Vegetables that consist mostly of leaves, such as spinach, kale, and lettuce, known for their nutritional value, including vitamins, minerals, and fiber.