Multiple Choice
Which of the following statements about the comparison between GDP in China and in the United States is CORRECT?
A) Using the exchange rate to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States.
B) Using purchasing power parity prices to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States.
C) China's GDP per person is higher using purchasing power parity prices rather than the exchange rate when valuing China's GDP in dollars.
D) None of the above answers are correct because they are all false statements.
Correct Answer:

Verified
Correct Answer:
Verified
Q264: What are the categories of total expenditure?
Q265: The chain-weighted output index method<br>A) is used
Q266: GDP can be computed as the sum
Q267: The circular flow diagram indicates that<br>A) households
Q268: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt=" -Using the above
Q270: When IBM, an American firm, produces computer
Q271: Potential GDP is the<br>A) the maximum amount
Q272: Which of the following expenditures associated with
Q273: A trend shows<br>A) the degree of correlation
Q274: The chain-weighted output index method of calculating