Nontradables Are Cited as a Reason Why Purchasing Power Parity

question 98

Multiple Choice

Nontradables are cited as a reason why purchasing power parity doesn't hold because:

• A) goods that you can't transport cannot be sold for a profit elsewhere, even if the price differs in different locations.
• B) there is no economic opportunity to profit if the goods cannot be sold in another market for another price.
• C) location-specific goods are impossible to calculate a price elsewhere for.
• D) All of these statements are true.

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Definitions:

1980s

A decade marked by significant political, technological, and cultural changes, influencing global economics, international relations, and the rise of personal computing and digital technologies.

1990s

The decade spanning from January 1, 1990, to December 31, 1999, marked by significant global events, technological advancements, and cultural shifts.

Productivity Growth Rates

The rate at which the efficiency of production of goods and services increases over time, leading to more output per unit of input.

Employment Growth

An increase in the number of people employed in an economy, indicating a growing workforce.