The Law of One Price, an Economic Principle, Means That

question 31

Multiple Choice

The law of one price, an economic principle, means that the price of a product in different markets should be the same if ____.

• A) the raw materials were obtained from a single source
• B) adjusted for inflation
• C) taxes are adjusted based on a single currency
• D) there are no significant costs associated with moving between markets

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Definitions:

Globalization

The method through which companies or various groups gain international impact or begin functioning globally.

Economic Connectivity

The degree and complexity of interdependence between different parts of the economic system, including industries, markets, and countries.

Social Connectivity

The extent to which individuals or groups interact with and are integrated into networks of social relationships.

OB Theories

Theories in organizational behavior that explore how individuals and groups act within organizations to understand and improve workplace dynamics.