Question
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
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
Answers
GPT-4o mini
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.