Absolute purchasing power parity is most apt to exist for which one of the following items?

Question

Quizplus · Accepted Answer

Absolute purchasing power parity is most likely to exist for an item like silver, which is a homogenous commodity with low transportation costs and is traded globally without differentiation in quality. The price of silver should be very similar across different countries after accounting for exchange rates. Other items like beef, computers, automobiles, and cell phones may have significant differences in price due to factors such as transportation costs, tariffs, taxes, and product differentiation.

Absolute Purchasing Power Parity Is Most Apt to Exist for Which