Final answer:
China's standard of living in 2010 using PPP prices is considered medium, with a much smaller GDP per capita compared to the United States. Despite having the largest GDP in PPP terms, the vast population results in a lower per capita figure. However, China's middle class has been growing, signifying improving living standards.
Step-by-step explanation:
Using PPP (Purchasing Power Parity) prices, China's standard of living in 2010 can be classified as medium. Although China has the largest GDP in PPP terms, with $24 trillion compared to the United States' $21 trillion, it also has a much larger population. This results in a GDP per capita that is less than one fourth that of the United States ($17,000 compared to $63,000), indicating that the Chinese people are still quite poor relative to the United States and other developed countries.
Moreover, according to LibreTexts™, the Chinese middle class has been growing. Fifty-four percent of Chinese in 2012 were considered middle class, a figure that is expected to rise, leaving only sixteen percent of Chinese people in poverty by 2022. This improvement signifies a move from a low-income status towards a middle-income status when evaluating the country's living standards.
Economists rank countries as low-, middle-, and high-income based on GDP per person. With China's GDP per capita below the threshold for high-income countries, but with substantial economic growth and poverty reduction, China's standard of living can be broadly characterized as medium.