Difficulty: Medium
Correct Answer: Switzerland
Explanation:
Introduction / Context:
Different international organisations and financial institutions periodically publish rankings that compare the cost of living or price levels across countries. These rankings help identify which economies are considered expensive or relatively affordable for residents and expatriates. This question asks you to recognise which country from the options is widely known as one of the world's most expensive economies to live in according to such comparisons.
Given Data / Assumptions:
Concept / Approach:
High income, developed economies with strong currencies often appear near the top of cost of living rankings. Switzerland, with cities such as Zurich and Geneva, is frequently listed as one of the most expensive countries due to high wages, strong currency, and elevated prices for housing, food, and services. India, Brazil, and Indonesia, while having expensive pockets, are generally classified as emerging or developing economies with significantly lower average price levels when converted at market exchange rates or measured in purchasing power terms. Therefore, Switzerland stands out as the correct choice.
Step-by-Step Solution:
Step 1: Recall that Switzerland is often mentioned in news reports and surveys as having high living costs, especially in major cities.
Step 2: Consider that India, Brazil, and Indonesia typically appear in lists of lower cost destinations, even though there may be costly neighbourhoods within these countries.
Step 3: Connect the idea of an expensive economy with factors such as high salaries, strong currency, and high prices for everyday goods.
Step 4: Recognise that Switzerland matches all these characteristics and is repeatedly ranked among the top in global cost of living indices.
Step 5: Conclude that Switzerland best fits the description of being one of the world's most expensive economies to live in.
Verification / Alternative check:
Even without memorising specific ranking years, you can verify this by recalling that comparison tables between major cities often list Zurich, Geneva, and other Swiss cities near the top for rental prices, restaurant costs, and service charges. Travel and relocation guides also frequently warn that Switzerland is expensive compared with most other countries. India, Brazil, and Indonesia rarely appear in such lists as the most expensive economies overall, although individual metropolitan areas may have higher living costs than their national averages.
Why Other Options Are Wrong:
India is generally considered a lower cost economy with relatively inexpensive goods and services when converted to global currencies, although prices vary by region. Brazil has moderate to high costs in some cities but is not typically classified as one of the world's most expensive economies overall. Indonesia has a relatively low cost of living in most areas compared to wealthy developed countries. None of these options match Switzerland's consistent reputation for high living costs.
Common Pitfalls:
A common mistake is confusing economic size with costliness; large emerging economies like India or Brazil may have high total output but still offer lower average prices. Another pitfall is focusing on luxury districts in any country and assuming the entire economy is among the most expensive. Remembering that small, high income countries with strong currencies, such as Switzerland, often top cost of living lists will help you answer correctly.
Final Answer:
Among the options, Switzerland is widely recognised as one of the world's most expensive economies to live in.
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