When Income Comparisons Are Made Using Purchasing Power Parity Rather

question 131

True/False

When income comparisons are made using purchasing power parity rather than market exchange rates, the gap in per capita income between developed and developing countries becomes smaller.

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Definitions:

Multiply

The mathematical operation of scaling one number by another, representing repeated addition.

Simplify

The process of making an algebraic expression or equation easier to understand by reducing it to its most basic form.

Divide

A mathematical operation where the total quantity is divided into equal parts, and the result shows how many of those parts make up the original amount.

Simplify

The process of altering an expression or equation to make it easier to work with, by combining like terms, reducing fractions, or employing identities.