Just as the CPI allows us to compare the cost of living across different periods of time, the _______ allows us to compare the cost of living across different locations.

Question

Quizplus · Accepted Answer

The purchasing power index (PPI) allows us to compare the cost of living across different locations. It measures the relative value of money in different places and takes into account factors such as exchange rates and inflation. The PPI is often used by expatriates and international companies to determine appropriate compensation and cost-of-living adjustments. The other options listed (consumer purchasing index, producer purchasing index, retail power parity) are not accurate descriptions of an index that measures the cost of living across different locations.

Just as the CPI Allows Us to Compare the Cost