Although the law of one price holds for single products, purchasing power parity is meaningful only when applied to a basket of goods. True or false?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
Section: Chapter Questions
Problem 12E
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Although the law of one price holds for single products, purchasing power parity is meaningful only when applied to a basket of goods.

True or false?
 
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