Which of the Following Stipulates That an Identical Product Must

question 90

Multiple Choice

Which of the following stipulates that an identical product must have an identical price in all countries when the price is expressed in a common currency?

• A) purchasing power parity
• B) the law of one price
• C) the comparative advantage theory
• D) the efficient market view

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Definitions:

Journal

A book or digital record used in accounting to record each financial transaction as it occurs in chronological order.

Ledger

A book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Transposition

The accidental rearrangement of digits of a number. Example: 152 → 125.

Error

A mistake in recording transactions or in financial statements, often requiring adjustments or corrections.