If a firm in the USA pays workers in New Zealand in US dollars, the PPP correction shows that those US dollars will have less value in New Zealand than in the USA. is it true or false 122341060IN356Nominal per capitaLuxembourgNorwayQatarSwitzerlandDenmarkAustraliaUnited Arab EmiratesSwedenNetherlands78910USA24 New Zealand183 BurundiUS$108,952 184,144 274,90167,779233457,884 555,986 655.672 7PPP per capitaQatarLuxembourgSingaporeNorwayBruneiUnited Arab EmiratesUSA49,183 8Switzerland46,986 9Netherlands46,860 10Australia32,163 33 New Zealand180183 CongoSource: International Monetary Fund, World Economic Outlook DatabaseUS$88,22281,46656,69451,95948,33347.43946,86041,95040,97339,76427,130329

Purchasing power varies among countries due to differences in living costs, inflation rates, and…

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If a firm in the USA pays workers in New Zealand in US dollars, the PPP correction shows that those US dollars will have less value in New Zealand than in the USA. is it true or false

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If a firm in the USA pays workers in New Zealand in US dollars, the PPP correction shows that those US dollars will have less value in New Zealand than in the USA. is it true or false

1
2
2341060IN
3
5
6
Nominal per capita
Luxembourg
Norway
Qatar
Switzerland
Denmark
Australia
United Arab Emirates
Sweden
Netherlands
7
8
9
10
USA
24 New Zealand
183 Burundi
US$
108,952 1
84,144 2
74,901
67,779
23
3
4
57,884 5
55,986 6
55.672 7
PPP per capita
Qatar
Luxembourg
Singapore
Norway
Brunei
United Arab Emirates
USA
49,183 8
Switzerland
46,986 9
Netherlands
46,860 10
Australia
32,163 33 New Zealand
180
183 Congo
Source: International Monetary Fund, World Economic Outlook Database
US$
88,222
81,466
56,694
51,959
48,333
47.439
46,860
41,950
40,973
39,764
27,130
329

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