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UPSC 2019: Consider the following statements: 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth-largest economy in the world. Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2
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Not attemptedCorrect Answer: (a) 1 only
PPP exchange rates are derived by comparing the prices of an identical basket of goods and services across countries, making statement 1 true. In 2019 India was the world’s 3rd-largest economy in PPP terms (after China and the USA), not the 6th; statement 2 is therefore false. Thus only statement 1 is correct. ([mgmresearch.com](https://mgmresearch.com/world-gdp-ppp-ranking-2019/?utm_source=openai))
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What is the correct answer to this UPSC 2019 Indian Economy question?▼
The correct answer is option (a): 1 only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this National Income & Economic Growth question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2019, GS Paper 1, as Question 82. It falls under Indian Economy > National Income & Economic Growth.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
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UPSC has asked 37 questions from National Income & Economic Growth (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.