If absolute purchasing power parity is said to hold for some good, then it must be true that the good in question is standardized, and virtually identical in the markets being considered.

Question

Quizplus · Accepted Answer

Absolute purchasing power parity assumes that a good should cost the same in two different countries when prices are expressed in a common currency, which implies that the good must be standardized and virtually identical across markets to ensure a valid comparison.

If Absolute Purchasing Power Parity Is Said to Hold for Some