To account for differences in the cost of living, one can adjust GNI per capita by ________, which allows for a more direct comparison of living standards in different countries.
A) gross domestic product
B) Human Development Index
C) living standards rate
D) purchasing power

Question

Quizplus · Accepted Answer

A common measure of economic development is a country's gross national income (GNI) per head of population. GNI is regarded as a yardstick for the economic activity of a country; it measures the total annual income received by residents of a nation. GNI per person figures can be misleading because they don't consider differences in the cost of living. To account for differences in the cost of living, one can adjust GNI per capita by purchasing power. Referred to as a purchasing power parity (PPP) adjustment, it allows for a more direct comparison of living standards in different countries.

To Account for Differences in the Cost of Living, One