Nontradables are cited as a reason why purchasing power parity doesn't hold because:

Question

Quizplus · Accepted Answer

The statements in all options accurately reflect why nontradables are a reason why purchasing power parity doesn't hold. Nontradables refer to goods that are location-specific and cannot be easily transported to other markets. As a result, there is no economic opportunity to profit from selling them elsewhere, even if the price differs between locations. It is also difficult to calculate a price for these goods elsewhere, rendering purchasing power parity difficult to achieve.

Nontradables Are Cited as a Reason Why Purchasing Power Parity