Purchasing power parity gives us a good idea of
A) what people are buying outside their own country while on vacation or while doing international business.
B) what people can actually buy with the financial resources allocated to them by their economic system.
C) what people would like to buy with the financial resources in their economic system.
D) purchasing trends across the globe.
E) average annual income.

Question

Quizplus · Accepted Answer

Purchasing power parity is a measure of what people can actually buy with the financial resources allocated to them by their economic system, taking into account differences in prices between countries. It helps to compare standards of living and economic well-being across countries.

Purchasing Power Parity Gives Us a Good Idea of