Which of the following stipulates that an identical product must have an identical price in all countries when the price is expressed in a common currency?
A) purchasing power parity
B) the law of one price
C) the comparative advantage theory
D) the efficient market view

Question

Quizplus · Accepted Answer

The law of one price stipulates that an identical product must have an identical price in all countries when the price is expressed in a common currency. Purchasing power parity is related to exchange rates, comparative advantage theory is related to trade, and efficient market view refers to stock markets.

Which of the Following Stipulates That an Identical Product Must