Table 13-2

-Refer to Table 13-2. For which country(ies) in the table does purchasing-power parity hold?
A) Bolivia and Japan
B) Bolivia and Morocco
C) Japan and Morocco
D) Norway and Thailand

Question

Table 13-2
 
-Refer to Table 13-2. For which country(ies) in the table does purchasing-power parity hold?
A) Bolivia and Japan 
B) Bolivia and Morocco 
C) Japan and Morocco 
D) Norway and Thailand

Quizplus · Accepted Answer

Purchasing-power parity (PPP) holds when a unit of any given currency should be able to buy the same quantity of goods in all countries. In the table, Bolivia and Morocco have the same PPP value of 1, indicating that the purchasing power of their currencies is equivalent. However, this value is different for Norway, Thailand, and Japan, suggesting that their currencies have different purchasing power. Therefore, the correct answer is B) Bolivia and Morocco.

Table 13-2 -Refer to Table 13-2. for Which Country(ies) in the Table