Explanation The correct answer is 1 only. Key Points • PPP is | UPSC LAW Optional

Explanation
The correct answer is 1 only.

Key Points
• PPP is an economic theory that contrasts the value of various currencies using a common "basket of goods and services."

• The PPP between two nations calculates how much money is needed in one country to buy a certain basket of goods and services in comparison to how much money is needed in the other country to buy the same basket of goods and services. Therefore, statement 1 is true.

• In PPP dollars, China has the largest economy in the world in 2018, with the United States and India coming in second and third, respectively. Therefore, assertion 2 is untrue.