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Why must national income be real, per capita and PPP-adjusted when comparing living standards?
A
Real includes net foreign income; per capita adjusts for exchange rates; PPP strips out inflation.
B
Real adjusts for population size; per capita strips out inflation; PPP measures income inequality.
C
Real strips out inflation; per capita adjusts for population size; PPP enables fair international comparison.
D
Real measures income inequality; per capita includes depreciation; PPP adjusts for population size.
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11.3.3 indicators of living standards and economic development Flashcards
27 flashcards on CIE Intl A Level Economics 11.3.3 indicators of living standards and economic development: the key terms and definitions you need to recall.