That Identical Goods Should Cost the Same in All Nations

question 156

Multiple Choice

That identical goods should cost the same in all nations, assuming it is costless to ship goods between nations and there are no barriers to trade, is a reflection of the

• A) monetary approach to exchange-rate determination.
• B) law of one price.
• C) fundamentalist approach to exchange-rate determination.
• D) exchange-rate-overshooting principle.

---

Definitions:

Analytical Intelligence

The competency to examine, judge, contrast, and compare various pieces of information.

Intelligence

The ability to acquire and apply knowledge and skills, encompassing a range of aptitudes, talents, and skills.

Healthier Environment

A setting or surrounding that promotes well-being and reduces the risk of health problems by minimizing pollutants, hazards, and stressors.

Early Adulthood

The period in a person's life typically ranging from the ages of 20 to 40, where many experience personal and professional growth.