Multiple Choice
The following table shows economic data for two countries.
-Refer to the table above.When comparing the PPP-adjusted GDP per capita in Countries A and B,what can we say about the difference in standard of living between the two countries?
A) Because the cost of living is lower in Country A, its standard of living is lower even when we look at the PPP-adjusted GDP per capita.
B) The exchange-rate-based measure of GDP per capita ignores the fact that the cost of living is lower in Country A.
C) When using the PPP-adjusted measure, the standard of living appears to be higher in the country with the lower exchange-rate-based measure for GDP per capita.
D) Both B and C.
Correct Answer:

Verified
Correct Answer:
Verified
Q148: Scenario: Two neighboring countries, Sweetland and Sourland,
Q149: Suppose production in an economy is represented
Q150: Scenario: The price of a standard basket
Q151: In Lutheria,there are 10,000 people in the
Q152: Scenario: Assume the following aggregate production functions
Q154: Scenario: Two Countries, X and Y, have
Q155: Scenario: Farm Country and Industry Country are
Q156: Two countries,Baltonia and Polonia,have aggregate production functions
Q157: Which of the following is a good
Q158: Scenario: The price of a standard basket