An Exception to the Law of One Price Occurs If

question 36

Multiple Choice

An exception to the law of one price occurs if

• A)the good is not tradeable.
• B)demand for the good is stronger in some countries than in others.
• C)exchange rates are flexible, rather than fixed.
• D)interest rates differ across countries.

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Definitions:

Marginal Output

The additional output that is produced by using one more unit of a particular input.

Total Output

The total amount of goods and services produced by an economy or a company during a specific period.

Worker

An individual who performs labor for compensation, including both employees and self-employed individuals.

Well-Child Check

A well-child check is a routine examination by a healthcare provider to assess the health, growth, and development of children and to provide parents with guidance on preventative care and vaccinations.