Question

When comparing per capita income between two countries, what factor can lead to a misleading conclusion?

• A. The exchange rate between the two currencies.
• B. The total GDP of each country.
• C. The population growth rate of each country.
• D. Significant differences in the cost of living

Answer 1

Answer:

D. Significant differences in the cost of living

• A higher per capita income in one country might not mean people are better off if the cost of living is also significantly higher, as their purchasing power may be lower.