If the prices used in two countries are exactly the same, then a comparison of the per capita GDPs of the two countries provides:
A. some insight into living standards depending on the accuracy of purchasing power parity.
B. no insight into living standards.
C. some insight into living standards depending on the extent of non-market activities in each country.
D. an exact comparison of living standards.
Answer: C
You might also like to view...
"I'm not going to pay for the good if, once produced, the good cannot be denied to anyone." This statement is most relevant to
A) negative externalities. B) positive externalities C) private goods. D) nonexcludable public goods. E) the issue of rivalry versus nonrivalry in consumption.
The law of diminishing marginal utility does not apply to goods that a person really enjoys.
Answer the following statement true (T) or false (F)
Which of the following is true about business cycles in the United States?
A. They vary greatly in length, frequency, and intensity. B. They are remarkably similar in length but vary greatly in intensity. C. They are similar in length, frequency, and intensity. D. They are similar in frequency and intensity but not in length.
The short-run aggregate supply curve is horizontal when
A. there are unemployed resources and prices do not increase when aggregate demand increases. B. there are no unemployed resources and prices do not increase when aggregate demand or supply increases. C. there are unemployed resources and prices do not decrease when aggregate supply increases. D. prices are inflexible and the economy is at full employment.