Consider the following statements:

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

Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2019 Prelims]

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer: (a)        

Explanation:

  • PPP (Purchasing Power Parity) is an economic theory that involves comparing currencies of different countries based on a standardized “basket of goods and services.”
  • The PPP between two countries is a measure of the amount of one country’s currency needed to purchase a specific basket of goods and services in that country, relative to the amount of another country’s currency required to purchase a similar basket of goods and services in the other country. Therefore, statement 1 is correct.
  • In terms of PPP dollars, China was the largest economy in the world in 2018, followed by the United States. India held the third position. Thus, statement 2 is incorrect.

Consider the following statements:                                                                   The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

Read More »

Consider the following statements:                                                         The Parliament of India can place a particular law in the Ninth Schedule of the Constitution of India. The validity of a law placed in the Ninth Schedule cannot be examined by any court and no judgement can be made on it. Which of the statements given above is/are correct?

Consider the following statements:                                               

Read More »
Loading...
Left Menu Icon