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Reika [66]
3 years ago
9

The GDP per capita of a country is lower than that of france. if the GDP per capita of the country is adjusted for PPP, the coun

try's revised GDP is higher than that of france. which of the following is most likely true about the country?
a. cost of living in the country is higher than that of france
b. the cost of living in the country is approximately equal to that of france
c. the cost of living in the country has increased over the past decade
d. the cost of living in the country is lower than that of france
Business
1 answer:
o-na [289]3 years ago
4 0

Answer:

D. The cost of living in the country is lower than that of France

Explanation:

PPP or Purchasing Power Parity is a measure of the cost of living in different countries. When GDP Per Capita is computed accounting for PPP, significant differences can show up between this measure and Nominal GDP Per Capita, this is because of differences in the cost of living among countries.

If the GDP Per Capita Nominal of a country is lower than that of France, it means that measured by US Dollars, the other country produces less output per person than France. However, if the GDP Per Capita PPP of the same country is higher than that of France, it means that even if output is less, people in the other country can buy more things with less income than people in France. (Remember than when calculating GDP, output is the same as income).

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A foreign company has offered to buy 75 units for a reduced sales price of $320 per unit. The marketing manager says the sale wi
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Answer:

an increase in the operating income by $16,322

Explanation:

The computation of the impact in the operating income is given below:

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A perfectly competitive firm faces a downward-sloping demand curve.

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