Answer Happy

Two neighboring countries, Goldland and Silverland, compete for foreign talent. An average worker in Goldland has an income per capita of 9,000 golds, whereas in Silverland the worker has an income of 100,000 silvers. A representative basket of goods that costs 100 golds in Goldland costs 1,250 silvers in Silverland. a. Using the PPP-based method, which country has the highest income per capita? b. Workers want to go to places where their money goes farther, that is, where they have a higher purchasing power. If the price of the basket of goods decreases in Silverland, what would expect a higher or lower influx of workers to Silverland?