Suppose a Burger King Whopper costs $3.54 in the United States. The Norwegian unit of currency is called the krona. If we estimate the cost of a Whopper in Norway at $3.54, we have used the concept of GDP per capita to make the comparison.

Question

Quizplus · Accepted Answer

The concept used for comparing the cost of a Whopper in Norway to the cost in the United States based on currency value is Purchasing Power Parity (PPP), not GDP per capita. PPP allows for the comparison of the purchasing power of various countries' currencies to buy the same goods, in this case, a Whopper, rather than comparing economic output per person as GDP per capita does.

Suppose a Burger King Whopper Costs $3