In 2012, if the PPP per capita of China was $9,040 and the PPP per cap

QUESTION

In 2012, if the PPP per capita of China was $9,040 and the PPP per capita of the United States was $52,340, this means that the:

A. GNI per capita was greater in China.

B. percent of goods and services consumed in the United States was lower.

C. standard of living in China was better.

D. cost of living was lower in China.

E. annual average GDP growth rate was lower in China.

ANSWER

D
In 2012 the GNI per capita for China was $5,720, but the PPP per capita was $9,040, suggesting that the cost of living was lower in China and that $5,720 in China would buy as much as $9,040 in the United States.