The best measure of a country's standard of living is
A)GDP per labor hour.
B)GDP per unit of capital.
C)GDP per capita.
D)total nominal GDP.

Question

Quizplus · Accepted Answer

GDP per capita is the most commonly used measure to compare living standards across countries. It reflects the average income per person in a country and takes into account the size of the population. It is a better measure than total nominal GDP because a large economy with a high GDP may not necessarily have a high standard of living if the population is also large. GDP per capita also considers the distribution of income in a country, as a high average income can mask inequality. GDP per unit of capital and GDP per labor hour are not as relevant as they do not capture the overall well-being of the population.

The Best Measure of a Country's Standard of Living Is