Which of the following statements are correct? Select one or more: a. In poor countries, non-tradeable goods and services are typically cheaper, in dollar terms, than in rich countries, due to the low cost of labour. b. If non-tradeable goods are cheaper in dollar terms in a poor country, then the PPP correction raises estimates of GDP per capita, relative to estimates using actual exchange rates. c. The PPP correction to Indonesian GDP per capita implies that a dollar will buy more goods and services in Sweden than in Indonesia. d. In PPP terms, Indonesian GDP per capita is 3 times higher than in dollar terms. This means that, from the point of view of a US firm seeking to employ Indonesians, their wages in dollar terms are not as low as first appears.

Which of the following statements are correct? Select one or more: a. In poor countries, non-tradeable goods and services are typically cheaper, in dollar terms, than in rich countries, due to the low cost of labour. b. If non-tradeable goods are cheaper in dollar terms in a poor country, then the PPP correction raises estimates of GDP per capita, relative to estimates using actual exchange rates. c. The PPP correction to Indonesian GDP per capita implies that a dollar will buy more goods and services in Sweden than in Indonesia. d. In PPP terms, Indonesian GDP per capita is 3 times higher than in dollar terms. This means that, from the point of view of a US firm seeking to employ Indonesians, their wages in dollar terms are not as low as first appears.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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