Which Factor May Adversely Affect the Ability of Purchasing Power

question 169

Multiple Choice

Which factor may adversely affect the ability of purchasing power parity to hold?

• A) elimination of trade barriers
• B) customs duties
• C) availability of close substitutes
• D) identical demand across countries

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Definitions:

Suburbs

Residential areas situated on the outskirts of cities and towns, typically characterized by lower population density than urban centers but more than rural areas.

Central Cities

The core urban area of a metropolitan region, often containing the major economic, political, and cultural institutions of that region.

Annexed Outlying Areas

Territories that have been formally incorporated into a country or state but lie outside its primary geographical boundaries.

Ku Klux Klan

A secret society in the southern U.S. that focuses on white supremacy, white nationalism, and anti-immigration, notorious for its violence against African Americans and other groups.