Q.
1
Statement (I): The ‘law of one price’ states that in competitive markets free of transportation costs and barriers to trade, identical products sold in different countries must sell for the same price when their price is expressed in terms of the same currency.
Statement (II): An ‘Efficient market’ has not impediments to the free flow of goods and services, such as trade barriers.
Code:
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A
Statement (I) is correct but (II) is incorrect
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B
Statement (II) is correct but (I) is incorrect
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C
Both statements (I) and (II) are correct
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D
Both statements (I) and (II) are incorrect