The fact that the prices for McDonald's Big Mac sandwich are not the same around the world illustrates one reason why purchasing power does not hold: Many goods are not traded internationally.

Question

Quizplus · Accepted Answer

The statement is true. The prices of goods, including the Big Mac sandwich, can vary in different countries due to factors such as local production costs, taxes, and market competition. This shows that purchasing power, which assumes a uniform global price level, cannot hold true for all goods.

The Fact That the Prices for McDonald's Big Mac Sandwich