Suppose a Burger King Whopper costs $3.54 in the United States.If we estimate the cost of a Whopper in Norway at U.S.$3.54,we have used the concept of purchasing power parity to make the comparison.

Question

Quizplus · Accepted Answer

Purchasing power parity is the concept of equalizing the purchasing power of different currencies by adjusting for inflation and exchange rate fluctuations. By estimating the cost of a Whopper in Norway at U.S.$3.54, we are using purchasing power parity to make a comparison between the prices of goods in different countries.

Suppose a Burger King Whopper Costs $3