The GDP per capita of a country is lower than that of France.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is higher than that of France.Which of the following is most likely true about the country?

Question

Quizplus · Accepted Answer

If the GDP per capita of the country is lower than that of France, but its revised GDP is higher than that of France when adjusted for PPP, it implies that the cost of living in the country is lower than that of France. This is because PPP takes into account the cost of living in each country and adjusts the GDP accordingly. Therefore, the country's lower GDP per capita is due to a lower cost of living and not necessarily a lower standard of living.

The GDP Per Capita of a Country Is Lower Than