Which of the Following Statements Is the MOST Accurate

question 22

Multiple Choice

Which of the following statements is the MOST accurate?
The law of one price states

• A) in competitive markets free of transportation costs and official barriers to trade, identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency.
• B) in competitive markets free of transportation costs and official barriers to trade, identical goods sold in the same country must sell for the same price when their prices are expressed in terms of the same currency.
• C) in competitive markets free of transportation costs and official barriers to trade, identical goods sold in different countries must sell for the same price.
• D) identical goods sold in different countries must sell for the same price when their prices are expressed in terms of the same currency.
• E) in competitive markets free of official barriers to trade, identical goods are sold at the same price regardless of transportation costs.

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Definitions:

Hypotheses

Theoretical statements set forth for experimentation that predict a possible relationship between two or more variables, which may include both null and alternative hypotheses.

Interquartile Range

A measure of statistical dispersion, equal to the difference between the upper and lower quartiles, representing the middle 50% of the data.

Outliers

Data points that significantly differ from other observations in a data set, often indicating measurement error or a novel phenomena.

Range

The difference between the highest and lowest values in a dataset, providing a measure of the data's spread or variability.