Question

How does purchasing power parity (PPP) data compare the cost of living between countries?(1 point)%0D%0AResponses%0D%0A%0D%0Aby dividing by the population of a country %0D%0Aby dividing by the population of a country %0D%0A%0D%0Aby examining the costs of similar goods and services%0D%0Aby examining the costs of similar goods and services%0D%0A%0D%0Aby summing the value of all the goods and services produced in a country%0D%0Aby summing the value of all the goods and services produced in a country%0D%0A%0D%0Aby combining health, education, and income indicators into a score that ranges from 0 to 1

Answer 1

Purchasing power parity (PPP) data compares the cost of living between countries **by examining the costs of similar goods and services**. This method assesses how much it would cost to buy the same basket of goods in different countries, allowing for a more accurate comparison of living standards and economic well-being.