Which of the Following Statements Is True of Purchasing Power

question 56

Multiple Choice

Which of the following statements is true of purchasing power parity (PPP) ?

• A)PPP figures can be misleading because they don't consider differences in the cost of living.
• B)The PPP for different countries is adjusted (up or down)depending upon whether the cost of living is lower or higher than in Great Britain.
• C)The PPP data gives a static picture of economic development.
• D)China's GNI PPP per capita is higher than that of the United States.
• E)PPP adjustment does not allow for a direct comparison of living standards in different countries.

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