In Which of the Following Ways Does Using Purchasing Power

question 19

Multiple Choice

In which of the following ways does using purchasing power parity to calculate GDP differ from the use of straight GDP in measuring a country's economic development?

• A)It typically lowers the overall value of the economy for less-developed countries.
• B)It typically elevates measured income for countries with advanced welfare systems.
• C)It typically elevates measured income for less-developed countries.
• D)It typically lowers the per capita income in a country no matter its level of development.
• E)It increases the gap in economy size between developed and less-developed countries.

---

Definitions:

Ions

Atoms or molecules with a net electric charge due to the loss or gain of one or more electrons.

Osmosis

The movement of water molecules through a semi-permeable membrane from a region of lower solute concentration to a region of higher solute concentration.

Membrane Potentials

The electrical potential difference across a cell's plasma membrane, critical for the propagation of nerve impulses and muscle contraction.

Albumin

A type of protein in the blood plasma responsible for maintaining osmotic pressure in the blood vessels and transporting substances.