Question

If in Japan the Per Capita GDP (Nominal) is 42,500 and the Per Capita GDP (PPP) is 34,200, whereas in Germany the Per Capita GDP (Nominal) is 40,500 and the Per Capita GDP (PPP) is 35,900, then this implies that:

A.In Japan, you can buy more for each dollar

B.In Germany, you can buy more for each dollar

C.In Japan, the Per Capita GDP (Nominal) is higher, so they must have a lower population

D.In Germany, the Per Capita GDP (PPP) is higher, so they must have a higher population

Which of these measures a countries average achievement in health, knowledge, and a decent standard of living?

A.GDP

B.HDI

C.GDI

D.HPI

In terms of the global economy the US economy accounts for nearly:

A.10% of global GDP

B.15% of global GDP

C.20% of global GDP

D.25% of global GDP

Answer 1

1. B.In Germany, you can buy more for each dollar.

Purchasing power parity (PPP) is a tool that compares different countries' currencies through a "basket of goods" approach. It facilitates comparision of standards of living between countries. Since the PPP value is higher in Germany it implies that you can buy more for each dollar in Germany as compared to Japan.

2. B.HDI

The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development. It uses indicators as proxy of a long and healthy life, being knowledgeable and have a decent standard of living. It is the geometric mean of normalized indices for each of the three dimensions.

3. C.20% of global GDP