Although imperfect, which of the following is used as a measure of the standard of living?
A) real GDP ÷ person
B) real GDP × population
C) nominal GDP × population
D) nominal GNP ÷ person
E) nominal GNP × population

Question

Quizplus · Accepted Answer

Real GDP per capita (or per person) is a commonly used measure of the standard of living in a country. It adjusts for inflation and provides an estimate of the average economic output per person in the country. Real GDP (not nominal GDP) is used because it takes into account changes in prices, making comparisons across time and between countries more accurate. Dividing by population gives a per capita measure.

Although Imperfect, Which of the Following Is Used as a Measure