Which of the Following Is an Example of the Law

question 41

Multiple Choice

Which of the following is an example of the law of one price?

• A) Exchange rates tend to have equivalent values. For example, one euro equals one U.S. dollar.
• B) Because people have essentially the same basic needs wherever they live, they tend to buy the same bundle of goods.
• C) Because wages are so much lower in China, eventually all U.S. jobs will be outsourced to China, leaving the United States to import all goods at one price.
• D) Because their countries have similar institutions, computer programmers in Germany and the United States either are or will be paid about the same.

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Definitions:

Nuts

Edible seeds enclosed in a hard shell, often used in the context of food and nutrition.

Berries

Little, fleshy fruits that are commonly fit for consumption, characterized by their juiciness, round appearance, vibrant hues, and a taste that may be either sweet or tart.

Min Function

A mathematical function used to determine the smallest value among a set of numbers or inputs.

Income

A measure of money received on a regular basis, either through employment, business, investments, or other sources.