Which of the following is true about economic development of a nation?
A) The purchasing power parity is a poor indicator of a people's total well-being.
B) GDP is a larger figure and includes a nation's income generated from exports, imports, and international operations.
C) Illegal activities such as gambling and black market transactions are considered in GDP and GNP.
D) Using gross product figures to compare production across countries accounts for different cost of living in each country.

Question

Quizplus · Accepted Answer

Purchasing Power Parity (PPP) is indeed a measure that can provide insights into the general well-being of a population by comparing the relative value of currencies and the cost of goods and services between countries. However, it does not capture all aspects of well-being such as health, education, and environmental quality, making it a limited indicator of total well-being.

Which of the Following Is True About Economic Development of a Nation