The Big Mac index is used to illustrate purchasing power parity (PPP) . Which one of the following is NOT an argument as to why this single product is appropriate for making PPP claims?
A) The product is standardized across countries.
B) The product is composed of several other goods.
C) The product's price is affected by local real estate and labor costs.
D) The product's price is always set in U.S. dollars.
Correct Answer:
Verified
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