With regard to international trade,what is the "law of one price"?
A) The price of labour,measured in terms of its opportunity cost,is the same in all markets.
B) The price of a product is always equal to the absolute cost of the resources that went into its production in any country.
C) The price of a product worldwide is always equal to the cost of production from the country with the lowest opportunity cost to make the product.
D) The price of a product that is costless to transport will be the same in all markets.
E) The price of natural resources is the same in all markets.
Correct Answer:
Verified
Q93: The hypothesis that the price of some
Q94: According to the Heckscher-Ohlin theory,national comparative advantages
Q95: The diagram below shows the domestic demand
Q96: North America exports clothing to the European
Q97: Consider the sources of the gains from
Q99: The diagram below shows the domestic demand
Q100: The diagram below shows the domestic demand
Q101: If Canada's index of export prices is
Q102: The table below shows hypothetical Canadian domestic
Q103: Suppose Canada's terms of trade rises from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents