A Principal Reason That Purchasing Power Parity Does NOT Hold

question 51

Multiple Choice

A principal reason that purchasing power parity does NOT hold exactly in practice is

• A)that consumers in different countries have different preferences.
• B)that foreign and domestic assets are not perfect substitutes.
• C)costs of production are not the same in all countries.
• D)that it is a short-run theory.
• E)the existence of non-traded goods.

---

Definitions:

Erectile Function

The ability of the penis to become stiff and engorged with blood, a physiological response necessary for sexual intercourse.

Erectile Tissues

Specialized tissues in the body that fill with blood and swell during sexual arousal, found in the penis, clitoris, and nipples.

Acquired Dysfunctions

Conditions or disorders related to sexual function that develop after a period of normal functioning, often due to psychological, physical, or relational issues.

Sexual Function Dissatisfaction

Unhappiness or discontentment with one’s sexual performance or capacity, which can affect overall well-being and quality of life.