purchasing power parity (part E)

• why may GDP per capita may not be accurate?

  using GDP per capita to compare living standards in countries with different currencies, exchange rate might not reflect true worth of 2 currencies
• what is purchasing power?

  real value of an amount of money in terms of what you can buy- can vary with other countries

  e.g £10 in Vietnam buys more goods than in the UK
• what does using PPP do?

  the comparisons of countries living standards involves adjusting GDP per capita figures to take into account differences in PP in those countries
• more accurate and easier comparison