Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Purchasing power parity (PPP) makes it possible to compare the purchasing power of two countries. What is a definition of PPP?

  • Athe amount of the domestic currency needed to purchase a unit of foreign currency
  • Bthe quantity of a currency required to purchase the same basket of goods in both countries
  • Cthe quantity of goods and services that can be purchased by a person on an average income
  • Dthe value of expenditure by households on goods and services in a country

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