PPP-adjustment takes into account differences in the cost of living between countries, allowing for a more realistic comparison of living standards. This means that countries with lower nominal GDP per capita may actually have a higher standard of living than suggested, and that the living standards of the world's poorest citizens are better reflected in dollar terms. Therefore, all of the statements in the answer choices are true.

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PPP-Adjustment

Question 112

Multiple Choice

PPP-adjustment:

A) gives us a more realistic sense of differences in living standards around the world.
B) allows us to see that poorer countries are not quite so poor as suggested by their nominal GDP per capita.
C) gives us a realistic sense of how the living standards of the world's poorest citizens translate into dollar terms.
D) All of these statements are true.

Correct Answer: