In Equilibrium, All Traded Goods Sell at the Same Price

question 152

Multiple Choice

In equilibrium, all traded goods sell at the same price internationally because of:

• A) government direction.
• B) arbitrage.
• C) markets in which buyers and sellers do not interact.
• D) the fact that the underlying value is the same everywhere.

---

Definitions:

FIFO Method

A inventory valuation method that assumes the first items purchased or produced are the first ones sold, standing for "First In, First Out."

Equivalent Unit

A measure used in cost accounting to represent a portion of a product in terms of a completed unit.

Cost Reconciliation

The process of analyzing and adjusting the differences between reported costs and actual costs, ensuring accuracy in financial reporting.

Partially Completed Production

Inventory that consists of items in the process of being manufactured but are not yet fully completed.