The concept of 'Purchasing Power Parity' is used primarily for:
A. Measuring unemployment rates
B. Calculating fiscal deficit
C. Determining domestic interest rates only
D. Comparing the real value of currencies and living standards across countries
Answer: Option D
Solution (By JKSSB Mock Tests)
PPP exchange rates equalise the purchasing power of different currencies by eliminating differences in price levels, allowing better comparison of real income and living standards.
Explanation:
Algorithmic pricing employs software algorithms that automatically adjust prices in response to demand, competitor prices and other data; under certain conditions it can facilitate tacit collusion or increase price volatility.
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