The Tendency of the Prices of Identical Baskets of Goods

question 126

Multiple Choice

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

• A)​Is stronger to the extent the countries compared have substantial tariffs on imported goods.
• B)​Is weaker, the higher the cost of transporting the goods between countries.
• C)​Is stronger for goods and services not traded internationally.
• D)​Would tend to become weaker when countries eliminated quotas on imports of the goods in the baskets.

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Definitions:

Anxiety Hierarchy

A list of situations or stimuli arranged in order of increasing ability to produce anxiety, used in desensitization therapies.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses or anxieties through gradual exposure to the feared object or situation, coupled with relaxation training.

Therapy

A treatment intended to relieve or heal a disorder, often involving psychological techniques for mental health issues.

Aversion Therapy

A form of psychological treatment in which an undesirable behavior is paired with an unpleasant stimulus to reduce the frequency of the behavior.