The Purchasing Power Parity Method of Comparing Income Levels Across

question 53

Multiple Choice

The purchasing power parity method of comparing income levels across countries

• A) calculates the cost of purchasing a common bundle of goods in each country and then uses this price index to convert each country's income to a common currency.
• B) uses the exchange rate to convert the income level of each country to a common currency.
• C) uses the prime interest rate in each country to convert the income level of each country to a common currency.
• D) calculates the ratio of imports relative to exports in each country and then uses this ratio to convert each country's income to a common currency.

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Definitions:

Bilateral Descent

A system of family lineage in which kinship and inheritance are traced through both parents' lines.

Double Descent

A system of kinship where individuals trace their ancestry through both their mother's and father's lines equally.

Lineage

A unilineal kin group descended from a common ancestor or founder who lived four to six generations ago and in which relationships among members can be exactly stated in genealogical terms.

Unilineal Kin Group

A social group where membership is inherited through either the male (patrilineal) or female (matrilineal) line exclusively.