Purchasing power parity is a per capita income measure that shows ________.

Question

Quizplus · Accepted Answer

Purchasing power parity measures the purchasing power of income by comparing the prices of a basket of goods and services between different countries. It takes into account the differences in cost of living and adjusts the income levels accordingly. Therefore, option A is the correct choice as it correctly describes what purchasing power parity measures. Options B, C, and D are incorrect as they do not accurately describe purchasing power parity.

Purchasing Power Parity Is a Per Capita Income Measure That