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:

Immediate Gratification

The desire to experience pleasure or fulfillment without delay or deferment.

Societal Expectations

Refers to the anticipated behaviors and roles that society presumes individuals will follow based on cultural norms and traditions.

Conscious Mind

The aspect of the mind that is aware of the self, one's surroundings, and one's thoughts, feelings, and experiences at any given moment.

Reality Principle

The goals of the conscious mind, which finds what works in reality.