Which of the Following Is Accurate Regarding Purchasing Power Parity

Multiple Choice

Which of the following is accurate regarding purchasing power parity?

A) It gives us a better idea of what people can actually buy with the financial resources they have.
B) It reflects the principle that exchange rates are set so that prices of similar products in different countries are unequal.
C) It does not really give a good sense of the standards of living around the world.
D) It reflects the principle that capitalism is a better system than communism.
E) None of these statements are accurate.