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The Tendency of the Prices of Identical Baskets of Goods

Question 106

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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