International comparisons of per capita GDP may not reflect the standard of living because __________.
A) currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities.
B) people in some countries enjoy poverty and do not mind a lack of access to medicine, education, nutritious food, and safe drinking water.
C) markets do not exist in less-developed countries.
D) None of the answers above are correct.

Question

International comparisons of per capita GDP may not reflect the standard of living because __________. ​
A) ​currency exchange rates may not fully account for differences in purchasing power, and thus people in a country with high per capita GDP may have a lower standard of living because of high local prices for food, housing, or other necessities.
B) ​people in some countries enjoy poverty and do not mind a lack of access to medicine, education, nutritious food, and safe drinking water.
C) ​markets do not exist in less-developed countries.
D) ​None of the answers above are correct.

Quizplus · Accepted Answer

Per capita GDP may not reflect the standard of living as currency exchange rates may not account for differences in purchasing power, causing people in a country with a high per capita GDP to still have a lower standard of living due to high local prices for necessities.

International Comparisons of Per Capita GDP May Not Reflect the Standard