We can expect deviations from PPP because of
A)quotas and tariffs.
B)transportation costs.
C)differentiated goods.
D)All of the above.

Question

Quizplus · Accepted Answer

All of the above factors can contribute to deviations from PPP. Quotas and tariffs can affect the prices of goods in different countries, transportation costs can add to the cost of goods and affect their prices, and the production of differentiated goods can lead to price differences even in the absence of trade barriers. Therefore, all of these factors can result in deviations from PPP.

We Can Expect Deviations from PPP Because of