According to a less extreme version of the PPP theory,given relatively efficient markets,the price of a "basket of goods" should be roughly equivalent in each country.

Question

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According to the less extreme version of the Purchasing Power Parity (PPP) theory, if markets are relatively efficient, the price of a "basket of goods" should be approximately equal in each country, which means that the answer is true. However, this is just a simplification of the theory, as in reality, markets are not completely efficient and other factors such as tariffs, transportation costs and government regulations can affect prices.

According to a Less Extreme Version of the PPP Theory,given