For which of the following goods or services does purchasing power parity most closely hold?

Question

Quizplus · Accepted Answer

Purchasing power parity theory suggests that the price of a basket of goods, including computers, should be similar in different countries after conversion to a common currency. This is because computers are tradable and have similar features and specifications, making competition and price parity more likely than for non-tradable goods like haircuts, massages, or real estate.

For Which of the Following Goods or Services Does Purchasing