If GDP per capita at PPP is lower in country X as compared with country Y, it costs more to buy the same basket of goods in country Y than it does in country X.

Question

Quizplus · Accepted Answer

If GDP per capita at PPP is lower in country X as compared with country Y, it means that the cost of living is lower in country X. Therefore, it costs less to buy the same basket of goods in country X than it does in country Y.

If GDP Per Capita at PPP Is Lower in Country