Country X's living standards were compared with country Y's living standards using real GNP per head converted into US dollars. Country X was ranked above country Y. Which factor might have caused this ranking to be incorrect?
- Country X's living standards were compared with country Y's living standards using real GNP per head converted into US dollars. Country X was ranked above country Y. Which factor might have caused this ranking to be incorrect? A Actual market exchange rates were used rather than purchasing power parity rates. B Government spending on transfer payments was higher in country Y than in country X. C Inflation was higher in country X than in country Y. D The distribution of income was more unequal in country X than in country Y.[1]
Mark scheme
Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.
- [1] A
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