Final answer:
China is the second largest economy based on GDP converted to U.S. dollars at the current exchange rate. However, due to its large population, China's GDP per capita is significantly lower than that of the United States, both in nominal terms and PPP, reflecting differences in wealth and living standards. Correct option is B.
Step-by-step explanation:
The news article reports that China is the second largest economy in the world based on GDP converted to U.S. dollars at the current exchange rate. This is derived from reports indicating China's GDP as $9.5 trillion compared to the United States' $16.8 trillion. However, when considering GDP per capita—GDP divided by the population, a different picture is painted in terms of individual wealth and living standards. China's GDP per capita is less than one fifth that of the United States due to China's much larger population.
In terms of Purchasing Power Parity (PPP), which adjusts for price level differences across countries, China has the largest GDP at $24 trillion compared to the United States' $21 trillion. Yet, the per capita GDP in PPP terms still reflects that the Chinese people are, on average, less wealthy than Americans. It's important to note that GDP per capita can provide only a rough comparison of living standards across countries, as it does not account for distribution of income and other factors influencing an individual's quality of life.