The measure most commonly used by economists to gauge the standard of living of a nation is:

Question

Quizplus · Accepted Answer

Real GDP per capita measures the economic output per person in a country, providing a more accurate measure of the standard of living than just the total GDP. It takes into account the population size and adjusts for inflation, enabling meaningful comparisons among countries with different populations and prices. Labor productivity (A) measures the efficiency of individual workers or firms, but it does not capture the broader economic well-being. Nominal GDP (B) is a measure of the monetary value of all goods and services produced in a country, which can be distorted by changes in prices and exchange rates. Real GDP (C) adjusts for inflation but does not account for population size.

The Measure Most Commonly Used by Economists to Gauge the Standard