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

question 40

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 barrier 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:

Rule of Five

An empirical rule suggesting that there's a 93.75% chance that a normal sample will fall within ±1.96 standard deviations of the mean.

Sample Size

The quantity of data points or observations employed in an experiment or research.

Chi-Squared Test

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in one or more categories.

Degrees of Freedom

The amount of separate values or quantities that can be given to a statistical distribution.