What is the reason for measuring purchasing power parity (PPP)?
A) To demonstrate the benefits of "fair trade"
B) To show how developing countries operate under their own economic logic
C) To justify the existence of vast economic inequalities
D) To show the need for land redistribution
E) To compare incomes across countries by accounting for different costs in different economies

Question

Quizplus · Accepted Answer

Purchasing Power Parity (PPP) is used to compare the relative value of different currencies and the cost of living between countries. It allows for a more accurate comparison of economic output and living standards by accounting for the differences in price levels across countries.

What Is the Reason for Measuring Purchasing Power Parity (PPP)