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Which of the Following Is a Partial Explanation for Why

Question 182

Multiple Choice

Which of the following is a partial explanation for why the PPP theory does not apply to the Big Mac Index?


A) Wages do not differ across countries
B) Trade barriers, such as tariffs and quotas on beef, may distort local prices
C) Taxes do not distort local prices
D) Rent does not vary substantially across countries
E) The Big Mac is traded internationally

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