Missed taiwan and Poland
We all know how massive Nauru's economy is.
Got Taiwan 1st
And, while, yes, nominal GDP is effected by currency fluctuations, PPP is hardly immune from that, as currency values have a great impact on the cost of goods and services in a country for a variety of different reasons. So, nominal GDP is affected by the vagaries of currency fluctuation, and PPP is affected by that, plus a whole set of other vagaries placed on top of that, such as tax and tariff fluctuations, wage fluctuations, oil price fluctuations, and fluctuations in the price of a cheeseburger.
that was the exact same thing I was thinking
What a shame.-.
Was this is a mistake?
Am I talking to anyone over here so?🤔🤗🤣
GDP (nominal) is more commonly used to simply measure the sizes/production/output of national economies and as GDP (PPP) is more often used for purposes related to standards of living or the market sizes due to their inherent characteristics.
(Allow me to write up rest of the response below as I lack the space to do it here alone)
Firstly, one big problem is that GDP (PPP) fails to take account of different industrial structures, qualities of products and how products are valued in different countries and therefore lacks accuracy - especially when comparing between developed and developing nations, with differing industrial structures and qualities of goods and services. Now how can this lead to a fall in accuracy one may ask, so let's take an example.
Plus there is a general argument that exchange rates are inseparable when we're to measure and compare the economic powers of countries. This is a quote from a WSJ article: ''China can’t buy missiles and ships and Iphones and German cars in PPP currency. They have to pay at prevailing exchange rates. That’s why exchange rate valuations are seen as more important when comparing the power of nations.". The quote saying the PPP is not adequate to measure what an economy can exactly do.
Sorry for that long read but if you did make it to this point, please do consider making the said changes? While GDP PPP is an undoubtedly useful figure, it seems quite inappropriate to use for a quiz that's "biggest economies quiz" - or so my opinion goes. Uh thank you for reading..?
GNP measures the production done by the nationals of the country while GDP measures production done in a country. For example, GDP of the US would include the production/consumption activities of an Indian tech worker in California while excluding production done by an Apple factory in India while the GNP would exclude the former and include the latter. The difference being what's called 'Net Factor Incomes from Abroad (NFIA)'
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