Average living standards are best measured using
A)GDP.
B)The economic growth of the economy.
C)Per capita GDP.
D)The capital stock of the economy.

Question

Quizplus · Accepted Answer

Per capita GDP provides a measure of the average living standards of a country by dividing the GDP by the population. This gives an idea of how much output (in terms of goods and services) each person is able to consume on average. While GDP and economic growth are also important indicators of living standards, they do not take into account population size and therefore do not provide a direct measure of individual living standards. The capital stock of the economy measures the amount of physical assets such as buildings and machinery, but this does not necessarily translate into higher living standards if these resources are not utilized efficiently or if income inequality is high.

Average Living Standards Are Best Measured Using