- Interview two people and survey what type of expenditures they had in their household for the past three months to “maintain a standard of living”
- From the survey results select ten products you wish to include in your basket of goods. What are the products you picked and why?
- What is the price for each product in Australia and where did you obtain the price?
- What is the price for each product in Canada and where did you obtain the price?
- Evaluate the concept of ‘Law of One Price’ by observing the actual spot rate and comparing it with the implied PPP exchange rate. Discuss possible practical issues that could have impacted the implied PPP exchange rate.