According to the Law of One Price, Identical Products Should

question 172

Multiple Choice

According to the law of one price, identical products should sell for the same price everywhere if

• A)consumers have knowledge of the prices charged for products in different markets.
• B)transactions costs are zero.
• C)firms can prevent consumers from engaging in arbitrage.
• D)there are no tariffs or other restrictions on imports or exports.

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Definitions:

Preoperational

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by an increase in symbolic play and egocentrism but a lack of logical operations.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others and to understand that others have beliefs and perspectives different from one's own.

Conservation

The principle that certain properties such as mass, volume, and number remain the same despite changes in the forms of objects, understanding of which is a key development in early childhood cognition.

Concrete Operational

A stage of cognitive development in children described by Piaget, characterized by the ability to think logically about concrete objects and situations.