Which of the following is a true statement about comparing world incomes? A. The

Question

Which of the following is a true statement about comparing world incomes?

A. The purchasing power of currency is about the same in most countries, so it is not necessary to adjust for purchasing power.

B. Adjusting world incomes for purchasing power gives a more accurate view than using market foreign exchange rates.

C. The best way to compare world incomes is to convert to a common currency using market foreign exchange rates.

D. It is more accurate to compare world incomes by using per capita income measured in the currency of each nation.

Explanation / Answer

B. Adjusting world incomes for purchasing power gives a more accurate view than using market foreign exchange rates.

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