Which of these is the best measure of the average standard of living in an economy?
A)The unemployment rate
B)Nominal income
C)Real GDP
D)National debt
E)Real GDP per capita

Question

Quizplus · Accepted Answer

Real GDP per capita is the best measure of the average standard of living in an economy as it takes into account the size of the population, adjusts for inflation, and provides a measure of the total output per person in the economy. The other options (unemployment rate, nominal income, national debt) are not necessarily indicative of the overall standard of living in an economy. Real GDP alone may overstate the standard of living if the population is growing rapidly, and nominal income does not account for inflation.

Which of These Is the Best Measure of the Average