Real GDP per capita is:
A) a perfect measure of a country's standard of living.
B) the only way to measure living standards among different countries.
C) an incomplete measure of a country's standard of living.
D) used only by the United Nations to compare nations based on measures of welfare.

Question

Quizplus · Accepted Answer

Real GDP per capita is an incomplete measure of a country's standard of living because it does not account for factors such as income distribution, non-monetary aspects of quality of life (e.g., environment, healthcare, education), and informal economic activities. Therefore, it should be used in conjunction with other measures to provide a more comprehensive picture of a country's standard of living.

Real GDP Per Capita Is