A country with a real GDP per person similar to real GDP per person in Australia but with limited political freedom is generally considered to have
A) a lower standard of living than Australia.
B) a larger Human Development Index because the other country still needs to develop more political freedom.
C) an overstated nominal GDP.
D) the same standard of living as Australia.
E) an understated GDP.

Question

Quizplus · Accepted Answer

A country with limited political freedom, despite having a similar real GDP per person to Australia, is generally considered to have a lower standard of living because political freedom and civil liberties are important components of overall well-being and quality of life, which are not captured by GDP alone.

A Country with a Real GDP Per Person Similar to Real