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The Most Meaningful Way to Compare Per Capita Gross Domestic

Question 385

Multiple Choice

The most meaningful way to compare per capita Gross Domestic Product (GDP) across countries is to


A) use foreign exchange rates to convert each country's per capita Gross Domestic Product (GDP) into dollars. Then compare.
B) first adjust each country's per capita Gross Domestic Product (GDP) to exclude all the goods and services that are not exchanged with other countries.
C) assume that the cost of living in each country is the same as the United States' cost of living.
D) first use purchasing power parity to factor in each country's true cost of living.

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