1. What is PPP GDP and why do we need to use it?2. Why is PPP GDP per capita a better measure then GDP alone? 3. Look up the stats for the following countries:Country20212021 GDP20212021 PPP GDP (in20212021 PPP GDP perGDP(In millions)PPPmillions)PPPcapitarankrankGDP perGDPcapitarankUnited1.$22,675,2712$22,675,27115$68,309StatesChinaMexicoLuxembourgCentralAfricanRepublic4. Why does Luxembourg rank so high and China so low in PPP GDP per capita? Is everybody inLuxembourg wealthy?5. Which large country ranks the highest in PPP GDP per capita?6. Take a closer look at the average income level per person per year, for people living in theCentral African Republic? Offer an economic explanation about how they can survive on that?

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Question

1. What is PPP GDP and why do we need to use it?
2. Why is PPP GDP per capita a better measure then GDP alone?

3. Look up the stats for the following countries:
Country
2021
2021 GDP
2021
2021 PPP GDP (in
2021
2021 PPP GDP per
GDP
(In millions)
PPP
millions)
PPP
capita
rank
rank
GDP per
GDP
capita
rank
United
1.
$22,675,271
2
$22,675,271
15
$68,309
States
China
Mexico
Luxembourg
Central
African
Republic
4. Why does Luxembourg rank so high and China so low in PPP GDP per capita? Is everybody in
Luxembourg wealthy?
5. Which large country ranks the highest in PPP GDP per capita?
6. Take a closer look at the average income level per person per year, for people living in the
Central African Republic? Offer an economic explanation about how they can survive on that?

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