Why is PCI counted on the basis of a dollar value?

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The Dollar is a widely expected currency

It is considered the medium of any international exchange

Both 1 and 2

None of these

answer is C.

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Detailed Solution

PCI counts on the basis of a dollar value because the Dollar is a widely expected currency, and it is considered the medium of any international exchange.
PCI is calculated by dividing the total income of a country divided by the total number of people. The calculation is that when the average income is considered, it is not counted based on the country's currency. Instead, it is calculated based on a dollar value. The reason behind this is the Dollar is a widely expected currency, meaning it is considered the medium of any international exchange. Plus, classifying countries by considering one value of money makes classifying output easier for the World Bank and the governments, which can help them bring in more change for development.

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