Which of the Following Is True

question 166

Multiple Choice

Which of the following is true?

• A) Exchange-rate-based measures of income per capita are identical to PPP-based measures of income per capita.
• B) Exchange-rate-based measures of income per capita differ from PPP-based measures of income per capita.
• C) The gap between the income per capita in the United States and the income per capita in poorer countries is large when PPP-based measures are used.
• D) The gap between the income per capita in the United States and the income per capita in poorer countries is small when exchange-rate-based measures are used.

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Definitions:

Inventories

Quantities of goods or materials on hand or in the process of being produced for sale.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Demand Increases

A situation where the quantity of a good or service sought by buyers rises due to factors like a decrease in price or an increase in consumer income.

Roses

Fragrant flowers from the genus Rosa, often symbolizing love and beauty, and cultivated in many varieties and colors.