If the prices used in two countries are exactly the same, then a comparison of the per capita GDPs of the two countries provides:
A)no insight into living standards.
B)some insight into living standards depending on the extent of non-market activities in each country.
C)some insight into living standards depending on the accuracy of purchasing power parity.
D)an exact comparison of living standards.

Question

Quizplus · Accepted Answer

When the prices used in two countries are exactly the same, comparing their per capita GDPs can offer some insight into living standards. However, this comparison is influenced by the extent of non-market activities (such as household work or volunteer services) that are not captured in GDP calculations.

If the Prices Used in Two Countries Are Exactly the Same