Re. the compulsory assignment, question ¡­

Re. the compulsory assignment, question 3(a) and (b): Please note that the reason that GDP per capita in Norway in PPP terms looks higher than GDP per capita in Norway in US$, is that the latter is measured in constant 2000 USD while PPP is measured in constant 2005 USD. Since there has been inflation in the US from 2000 to 2005, the PPP figures looks higher that the US$ figures for Norway, but this is only due to the differences in the dating of the dollar value. For this reason we included question 3(c), where the value of a PPP$ and the value of a US$ are measured at the same time (in 2010). Here you see that GDP per capita in PPP terms is lower than GDP per capita at the exchange rate for Norway, while the opposite is true for China, exactly as one would expect.