Purchasing price parity is more likely to be the case for common commodities than for personal services.

Question

Quizplus · Accepted Answer

Purchasing price parity refers to the phenomenon when the same good is sold for the same price in different countries, taking into account the exchange rate. This is more likely to occur for commodities such as oil, gas, and agricultural products, which have standardized prices and are traded on global markets. In contrast, personal services such as healthcare, education, and haircuts vary greatly in quality and price depending on the country and region.

Purchasing Price Parity Is More Likely to Be the Case