Question 1

GDP in current US Dollars is the accounting measurement system for the market

values of services and goods where international goods may be similarly priced while the

locally produced goods are priced differently.

Question 2

GDP in the international power parity (GDP in PPP) entails using the purchasing

power parity to make adjustments to the GDP through employing inflation and exchange

rates on comparable market basket goods (such as transportation and housing).

Question 3

The GDP per capita (GDP per capita PPP) in purchasing power parity in current

international dollars is calculated by dividing the GDP in PPP by the total population of

people in the country.

Question 4

When China’s economy is larger than that of the United States, the measurement I

think they used is the Purchasing Power Parity (PPP) method. By employing inflation and

exchange rates on the market basket of goods in China, it was found that the market value of

goods produced locally in China was higher than that of the United States. Therefore, the cost

of living adjustment in China using PPP indicated that its economy is now larger than that of

the United States.

Question 5

a) 70/7=10 years.

b) In 10*2=20 years, it will double to $28,476 (14,238*2).

c) In 20 more years, it will double again to $56,952 ($28,476*2).

d) It will take about 40 years at a 7% growth rate for the Chinese to have a standardized

living similar to the Americans today.

Question 6

I believe that the average Chinese person will not have the same material standard of

living as Americans today because the GDP growth between the two countries differs daily.

It is also unrealistic to assume that China’s growth rate would be constant. Therefore, It

would not be accurately measurable.

References

Abel, W., & Mappa, A. (2017). Fundamentals of Economic Geography: A Market

Approach (p. 272). BVT Publishing.