The World Bank estimates GNI per capita and then adjusts figures across countries based on _____

Question

Quizplus · Accepted Answer

The World Bank adjusts GNI per capita figures across countries based on the purchasing power of income in each country, allowing for a more accurate comparison of living standards. This adjustment is made using a measure called Purchasing Power Parity (PPP), which takes into account differences in the cost of living and inflation rates between countries. Population growth rate, unemployment rate, inflation rate, and consumer price index can all indirectly affect GNI per capita, but they are not directly used by the World Bank to adjust figures.

The World Bank Estimates GNI Per Capita and Then Adjusts