QUESTION

Easy

Economy

Prelims 2019

Consider the following statements:

Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.
In terms of PPP dollars, India is the sixth largest economy in the world.

Which of the statements given above is/are correct?

Select an option to attempt

Explanation

Statement 1 is correct: Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries.

Statement 2 is incorrect: India is not the sixth-largest economy in the world in terms of PPP dollars. It is currently the third largest economy in terms of PPP dollars, after China and the United States.

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