Purchasing power parity (PPP) data compares the cost of living between countries by examining the costs of similar goods and services. This method allows for a more accurate comparison of living standards and economic productivity across different nations by taking into account the relative price levels of a consistent basket of goods and services rather than just exchange rates.
How does purchasing power parity (PPP) data compare the cost of living between countries?(1 point)
Responses
by summing the value of all the goods and services produced in a country
by summing the value of all the goods and services produced in a country
by dividing by the population of a country
by dividing by the population of a country
by combining health, education, and income indicators into a score that ranges from 0 to 1
by combining health, education, and income indicators into a score that ranges from 0 to 1
by examining the costs of similar goods and services
1 answer