With reference to Purchasing Power Parity (PPP), consider the following statements:
1. PPP compares the cost of living between countries by adjusting for exchange rate differences.
2. India's per capita income is lower when adjusted for PPP
3. India ranks as the third-largest economy in the world based on PPP.

Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All of the above

Question

With reference to Purchasing Power Parity (PPP), consider the following statements:
1. PPP compares the cost of living between countries by adjusting for exchange rate differences.
2. India's per capita income is lower when adjusted for PPP
3. India ranks as the third-largest economy in the world based on PPP.

Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) All of the above

TutorArc · Accepted Answer

Statement 1 is correct : PPP compares the cost of living between countries by adjusting for exchange rate differences. It allows for more accurate comparisons of economic output and living standards.

Statement 2 is not correct : India's per capita income is higher when adjusted for PPP. The purchasing power in India is stronger due to lower costs of goods and services.

Statement 3: Correct : India ranks as the third-largest economy in the world based on PPP, following China and the US.

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M Question 1	⏱ 0
With reference to Purchasing Power Parity (PPP), consider the following statements: 1. PPP compares the cost of living between countries by adjusting for exchange rate differences. 2. India's per capita income is lower when adjusted for PPP 3. India ranks as the third-largest economy in the world based on PPP. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) All of the above

International Economics

Purchasing Power Parity (PPP)

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