There are several reasons Purchasing Power Parity may not hold in reality. Among those reasons are: (Mark ALL that apply) A. The exact quality of goods varies between countries B. Some goods are not tradeable. C. Some countries have tariffs or other trade barriers. D. People's tastes vary between countries.

Q: how can countries attain/account for trade equilibria when involved in trade transactions?

A: Getting involved in trade transactions means trading in the goods and services with the rest of the…

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Q: Based this table, what is the value of the trade balance?   a. $100 b. -$100 c. -$55 d. $55

A: Trade balance = Export of goods and services – import of goods and services. = 400 – 500 = -100

Q: Purchasing power parity may not hold in practice due to

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A: ***Since the student has posted a question with multiple MCQs, the expert is required to solve only…

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