If absolute purchasing power parity is said to hold for some good, then it must be true that there are
no signiﬁcant barriers to trading the good.

Question

Quizplus · Accepted Answer

Absolute purchasing power parity states that the price of a good should be the same in two different countries once it is converted to a common currency. This assumes that there are no significant barriers to trading the good, such as tariffs or transportation costs, which would affect its price in each country.

If Absolute Purchasing Power Parity Is Said to Hold for Some