The Following Table Shows Economic Data for Two Countries

question 153

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.

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Definitions:

Capital Stock

The general term applied to the shares of a corporation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock.

Capital Stock

The total amount of shares that a corporation is authorized to issue, as represented in its financial statements.

Commission Charges

Fees paid for services, usually a percentage of the transaction made or handled by a service provider.