On the basis of exchange rates,per capita income in developing countries is around $500 per year; in the United States per capita income is about $46,000.Why does this overstate the difference in living standards? How does the purchasing power parity method of comparing income in different countries deal with that problem?

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The Answer of On the basis of exchange rates,per capita income in developing countries is around $500 per year; in the United States per capita income is about $46,000.Why does this overstate the difference in living standards? How does the purchasing power parity method of comparing income in different countries deal with that problem?

On the Basis of Exchange Rates,per Capita Income in Developing