The most accurate way to compare standards of living throughout the world is to look at
A)total GDP.
B)GNP.
C)purchasing power parity.
D)foreign exchange rates.

Question

Quizplus · Accepted Answer

Purchasing power parity (PPP) accounts for differences in the cost of living between countries, thus providing a more accurate picture of the standard of living in each country. GDP and GNP do not take into account differences in the cost of living, and foreign exchange rates can be influenced by other factors such as currency speculations and government interventions.

The Most Accurate Way to Compare Standards of Living Throughout