Which of the Following Statements Is the MOST Accurate? the Law

question 30

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 barrier 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 barrier 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 barrier to trade,identical goods are sold at the same price regardless of transportation costs.

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Definitions:

Conceptual Skills

The ability to think in abstract terms and to see how parts fit together to form the whole.

Top Managers

The president and other top executives of a business, such as the chief executive officer (CEO), chief financial officer (CFO), and chief operations officer (COO), who have overall responsibility for the organization.