Use the (hypothetical) information in the following table to answer the following questions.
Table 31-1

-Refer to Table 31-1.For which country(ies)in the table does purchasing-power parity hold?
A)Bolivia and Japan
B)Bolivia and Morocco
C)Japan and Morocco
D)Norway and Thailand

Question

Use the (hypothetical) information in the following table to answer the following questions.
Table 31-1
 
-Refer to Table 31-1.For which country(ies)in the table does purchasing-power parity hold?
A)Bolivia and Japan 
B)Bolivia and Morocco 
C)Japan and Morocco 
D)Norway and Thailand

Quizplus · Accepted Answer

Purchasing-power parity (PPP) holds when the exchange rate between two countries allows for the purchasing power of each currency to be equal. In the table, Bolivia and Morocco have the same PPP for the Big Mac, meaning the exchange rate between their currencies allows for the same amount of purchasing power. Therefore, the answer is B, Bolivia and Morocco. None of the other countries in the table have the same PPP.

Use the (Hypothetical) Information in the Following Table to Answer