Question

The images show the cost of the same bike in the United States and Britain.

2 bikes are shown. The first bike costs 75 U S dollars, and the second bike costs 49.50 British pounds.

The concept shown in the images is known as

purchasing power parity.
exchange rates.
factors of production.
gross domestic product.

Answer 1

purchasing power parity.

It compares the price of the same good in two countries to illustrate differences in purchasing power between currencies.