Which of the following prevents the purchasing power parity theorem from holding perfectly?

Question

Quizplus · Accepted Answer

The purchasing power parity theorem assumes that goods can be freely traded between countries without any costs or restrictions. However, transportation costs, goods that cannot be shipped, and tariffs and quotas all prevent this assumption from holding perfectly and can disrupt the balance of prices between countries.

Which of the Following Prevents the Purchasing Power Parity Theorem