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.

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Definitions:

Businesses

Organizations engaged in commercial, industrial, or professional activities.

Sustainable Growth

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Ecological Economists

Experts who study the relationship between ecological systems and economic systems, often focusing on sustainability and environmental impacts of economic decisions.