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【单选题】
The world price of a simple electronic calculator is $5.00. Before Zimbabwe allowed trade in calculators, the price of a calculator there was $7.50. Once Zimbabwe began allowing trade in calculators with other countries, Zimbabwe began
A.
importing calculators and the price of a calculator in Zimbabwe decreased to $5.00.
B.
importing calculators and the price of a calculator in Zimbabwe remained at $7.50.
C.
exporting calculators and the price of a calculator in Zimbabwe decreased to $5.00.
D.
exporting calculators and the price of a calculator in Zimbabwe remained at $7.50.
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A.
Only that there are no transportation costs and restrictions on trade.
B.
Only that the markets are perfectly competitive, i.e., P = MC.
C.
The factors of production are identical between countries.
D.
No arbitrage exists.
E.
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【单选题】In order for the condition E$/HK$ = PUS/PHK to hold, what assumptions does the principle of purchasing power parity make?
A.
Only that there are no transportation costs and restrictions on trade.
B.
Only that the markets are perfectly competitive, i.e., P = MC.
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