What Is Meant by the "Law of One Price

question 84

Multiple Choice

What is meant by the "law of one price"?

• A)Identical products should sell for the same price everywhere.
• B)A law was passed in 1913 that made it illegal to sell the same good or service to different people for different prices.
• C)This is a section of the Sherman Act that forced trusts (for example, the Standard Oil Company)to charge the same price for the same good or service in different states.
• D)Foreign companies should not be allowed to sell a product in the United States for prices different from prices these companies charge in other countries.

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Definitions:

Per Person

is a measure or quantity allocated or attributed to each individual in a group or population.

Social Insurance

A public insurance program that provides protection against economic risks (e.g., unemployment, disability, old age).

Means-Tested

A determination to ascertain whether an individual or family is eligible for government assistance based on their income or resources.

Monetary Benefits

The financial gains received by individuals or organizations, often from employment, investments, or governmental policies.