Which of the following is an example of the law of one price?
A. Because their countries have similar institutions, computer programmers in Germany and the United States either are or will be paid about the same.
B. Because people have essentially the same basic needs wherever they live, they tend to buy the same bundle of goods.
C. Exchange rates tend to have equivalent values. For example, one euro equals one U.S. dollar.
D. Because wages are so much lower in China, eventually all U.S. jobs will be outsourced to China, leaving the United States to import all goods at one price.
Answer: A
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Technological efficiency necessarily means producing
A) at minimum cost. B) with the highest level technology available. C) without using more inputs than necessary. D) technology itself.
Which one of the following equations is correct?
A. Total reserves minus excess reserves equals required reserves. B. Excess reserves minus required reserves equals total reserves. C. Required reserves equals excess reserves divided by total reserves. D. Total reserves equals excess reserves divided by required reserves.