The Idea That Identical Goods Trading in Different Markets Should

question 68

Multiple Choice

The idea that identical goods trading in different markets should have the same price is called

• A) the interest rate parity
• B) the Big Mac index
• C) the law of one price
• D) none of the above

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Definitions:

Internet

A global network of computers and servers that supports the vast majority of communication and data exchange across the world.

Facebook

A social networking site that allows users to create profiles, share photos and videos, send messages, and keep in touch with friends, family and colleagues.

WAN

Wide Area Network, a telecommunications network that extends over a large geographical area for the primary purpose of computer networking.

LAN

Local Area Network, a computer network that interconnects computers within a limited area such as a home, school, or office building.