Which of the Following Is an Example of the Law

question 61

Multiple Choice

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

• A) Prices are just one of the many factors that firms use when deciding where to locate production.
• B) If one county has a comparative advantage in producing a particular good, another country must have a comparative advantage in producing another good.
• C) Wages in India are lower than wages in the United States, and so firms move their call centers to India. This tends to raise wages in India and depress wages in the United States.
• D) Because most industries in the United States are dominated by one or two firms, the dominant firm sets the price and other firms in the industry follow.

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Workplace-level employee representation

The practice of having employees represented by fellow workers or a union at the level of their individual workplace to negotiate conditions and address concerns.

Employee delegates

Representatives chosen by workers to act on their behalf in discussions or negotiations with management.

France

A country in Western Europe known for its rich history, culture, and significant contributions to art, science, and philosophy.