Question

The higher a country's purchasing power, the more likely it is to also have ______.

A. a high rate of consumer ethnocentrism
B. a growing number of low-income households
C. lower per capita incomes
D. a large proportion of middle-income households

Answer 1

A higher purchasing power in a country is more likely to be associated with a large proportion of middle-income households, reflecting a higher standard of living and a more even income distribution.

Step-by-step explanation:

The student is asking about the relationship between a country's purchasing power and its socioeconomic characteristics. Specifically, the given options explore various outcomes that may be associated with higher purchasing power. In economic terms, purchasing power is a measure of the value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. When a country has a higher purchasing power, it generally means that its residents can afford to buy more goods and services.

This tends to lead to a higher standard of living because of the relatively inexpensive access to a variety of goods and services. These populations also have higher life expectancies due to high-quality healthcare and lower birth rates. As a result of higher productivity, these countries tend to have higher gross domestic production (GDP). Higher levels of GDP, coupled with lower population growth rates, leads to higher GDP per capita.