Which of These Is the Relative Ability of Two Countries

question 169

Multiple Choice

Which of these is the relative ability of two countries' currencies to buy the same "basket" of goods in those two countries?

• A) Fisher effect
• B) Law of one price
• C) Purchasing power parity
• D) Cross rates

---

Definitions:

Microinches

A unit of length used in engineering and machining that equals one millionth of an inch, often used to specify surface finish.

Micrometers

Precision measuring instruments used to measure very small dimensions with high accuracy.

Quality of Finish

Refers to the surface texture, accuracy, and visual appearance of a manufactured part after production.

General Note

A notation on engineering drawings or documents that provides additional information applicable to the entirety of the drawing.