The Tendency of the Prices of Identical Baskets of Goods

question 1

Multiple Choice

The tendency of the prices of identical baskets of goods across countries to converge:

• A)​Is weaker to the extent the countries compared have substantial tariffs on imported goods.
• B)​Is weaker to the extent the countries compared have limiting quotas on imported goods.
• C)​Is weaker for goods and services not traded internationally.
• D)​All of the above are true.

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Definitions:

South Vietnam

The former, non-communist republic located in the southern half of Vietnam, existing from 1954 until its merger with North Vietnam in 1976 following the Vietnam War.

Attrition Strategy

A military strategy aimed at wearing down an opponent through continuous losses in personnel and material.

Brutality

The extreme cruelty or inhumanity of actions, often used in the context of violence by authorities or during conflicts.

Vietnam War

A protracted conflict from the late 1950s to 1975 in Vietnam, featuring North Vietnamese forces against South Vietnam and its principal ally, the United States.