Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:
A. price parity purchasing index.
B. consumer price index.
C. consumer purchasing power index.
D. purchasing power parity index.
D. purchasing power parity index.
You might also like to view...
Refer to the above figure. As the real national income expands from Y2 to Y3,
A) tax revenues fall. B) a budget deficit occurs. C) government transfers rise. D) a budget surplus occurs.
If the cost of a typical basket of goods in the U.S. is $100 and in France it is 400 euros, and the nominal exchange rate is 2 euro per dollar, what is the real exchange rate?
A. 0.5. B. 1.0. C. 1.5. D. 2.0.
Suppose that the following occurred in two countries during the past decade. Country X, real Gross Domestic Product (GDP) rose 40 percent and population rose 50 percent; Country Y, real Gross Domestic Product (GDP) increased 80 percent and population increased 70 percent. Based on this information, which is TRUE?
A. Both countries have experienced growth in per capita real Gross Domestic Product (GDP). B. Chances for an improved standard of living are greater in Country X. C. Only Country Y has experienced growth in its per capita real Gross Domestic Product (GDP). D. Neither country has experienced growth in per capita real Gross Domestic Product (GDP).
If the production of a good generates external ________, the government could increase efficiency by ________ production of the good.
A. benefits; taxing B. costs; subsidizing C. costs; increasing D. benefits; subsidizing