Question
Which of the following countries had one of the highest GDP per capita (PP
- P ratios in the world based on 2022 data?
Solution
Understanding GDP per Capita (PPP):
- GDP per Capita: This is the total Gross Domestic Product of a country divided by its total population. It provides an average measure of economic output per person.
- PPP (Purchasing Power Parity): This adjustment accounts for the differences in the cost of living and inflation rates between countries. It allows for a more accurate "apples-to-apples" comparison of real living standards by measuring what a local currency can actually buy in its home market.
- Luxembourg (Correct): Luxembourg consistently ranks near the top of global lists (often #1 or #2 alongside Ireland). In 2022, its GDP per capita (PPP) exceeded 140,000 . Its high ratio is driven by a massive financial services sector and a large number of cross-border workers who contribute to the GDP but are not counted in the resident population divisor.
- India: While India has a high total GDP, its massive population results in a relatively low GDP per capita (PPP), which was approximately 8,300 to 9,000 in the 2022-24 period.
- Brazil: Brazil is a major emerging economy, but its GDP per capita (PPP) sits in the middle-income range, roughly 18,000 to 20,000 during this timeframe.
- Nigeria: As a developing nation, Nigeria’s ratio is lower, typically hovering around 5,000 to 6,000 (PPP).
More Research Questions
- Which of the following best describes the short-run Aggregate Supply (AS) curve in the presence of sticky wages?
- Assume that there are equal numbers of male and female students in a university. Of all male students, 10 per cent major in economics; and of all female st...
- A random variable R takes values 5%, 10%, 15%, 20% with probabilities 0.1, 0.4, 0.3, 0.2 respectively. Find E(R²):
- What was the Financial Inclusion Index (FI Index) value in March 2024?
- Which of the following is NOT a postulate of the Classical Model of full-employment equilibrium?
- Demonetization refers to
- How much did the Reserve Bank of India approve to transfer as a dividend to the Government of India for FY25?
- The 'Basel III' framework, monitored by the BIS, is primarily concerned with:
- Suppose after paying bills and setting aside some money for retirement, Joana has $130 left to spend on just two goods: concerts and books. For simplicity,...
- The "Balanced Budget Multiplier" states that if the government increases expenditure and taxes by the same amount, the net effect on national income is:
