ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Citizens in Country Y have a higher standard of living.
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There is less environmental pollution in Country X.
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Citizens in Country Y have less access to education.
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There is a higher level of unemployment in Country X.
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Detailed explanation-1: -Country X has a high gross domestic product. Country Y has a much lower gross domestic product than Country X. Which of the following statements is MOST LIKELY correct? Citizens in Country Y have a higher standard of living.
Detailed explanation-2: -GDP is the measure most often used to assess the economic well-being of a country. Besides measuring the pulse of a country, it is the figure used to compare living standards in different countries.
Detailed explanation-3: -Rising GDP means the economy is growing, and the resources available to people in the country – goods and services, wages and profits – are increasing.
Detailed explanation-4: -(i) Non monetary exchanges. GDP measures the goods and services produced in an economy during a particular period of time. (ii) Inflation. GDP does not take into account the level of prices in a country. (iii) Externalities. (iv) Income pattern.