Which of the following countries had one of the highest

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).