Which of the Following Is an Economic Principle That States

question 75

Multiple Choice

Which of the following is an economic principle that states all identical goods in different markets must have the same price?

• A) purchasing power parity
• B) interest rate parity
• C) law of one price
• D) price swap parity

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Definitions:

Solely

Refers to something done exclusively by one entity or individual, without involvement from others.

Principal's Business

The main activities and operations undertaken by a business or organization to fulfill its objectives and generate revenue.

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the income earned from lending money.

Agency Law

The legal principles governing the relationship between an agent, who acts for another person (the principal), and the rights and obligations that arise from this relationship.