Generally Unfavorable Evidence on PPP Suggests That

question 19

Multiple Choice

Generally unfavorable evidence on PPP suggests that

• A)substantial barriers to international commodity arbitrage exist.
• B)tariffs and quotas imposed on international trade can explain at least some of the evidence.
• C)shipping costs can make it difficult to directly compare commodity prices.
• D)all of the above

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Definitions:

Social Judgment Theory

A theory that proposes individuals make judgments about ideas or items, based on what they already believe, their anchor points.

Foot-In-The-Door Technique

A persuasive strategy that involves getting a person to agree to a large request by first setting them up to agree to a modest request.

Balance Theory

is a psychological theory suggesting that individuals strive for consistency in their relationships, attitudes, and beliefs within a triadic relationship model.

Unit Relation

The way in which units, such as individuals or groups, interact or are connected to each other within a larger system or structure.