For Which of the Following Goods Would the Law of One

question 30

Multiple Choice

For which of the following goods would the law of one price most likely hold?

• A) milk in Seattle, Washington and milk in Portland, Oregon
• B) energy in Sacramento, California and energy in New Orleans, Louisiana
• C) subway rides in New York, New York and subway rides in Toronto, Ontario
• D) clothing in Bangor, Maine and clothing in Los Angeles, California
• E) shoes in Vancouver, British Columbia and shoes in Miami, Florida

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Definitions:

Marginal Tax Rates

The rate at which the last dollar of income is taxed, reflecting the percentage of tax applied to your income for each tax bracket in which you qualify.

Interest Income

Earnings generated from the lending of money or from deposit funds in interest-bearing accounts.

Eligible Dividends

Dividends designated by a corporation to be eligible for a lower tax rate on the dividend income received by an individual shareholder.

Tax Paid

Refers to the total amount of taxes remitted to the relevant tax authorities for income, sales, property, or other forms of taxes.