ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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High GDP per capita makes everyone richer.
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High GDP per capita means inflation is low and the cost of goods is lower.
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High GDP per capita usually indicates better nutrition, housing, education, and job opportunities.
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High GDP per capita does not affect quality of life because money can’t buy happiness.
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Detailed explanation-1: -As a result, higher GDP per capita is often associated with positive outcomes in a wide range of areas such as better health, more education, and even greater life satisfaction.
Detailed explanation-2: -Gross domestic product, or GDP, measures the total output of the economy, including activity, stability, and growth of goods and services; as such, it’s seen as a proxy for the economy. The standard of living is derived from per capita GDP, determined by dividing GDP by the number of people living in the country.
Detailed explanation-3: -GDP is rough, but useful No single number can capture all the elements of a concept as broad as standard of living. Nonetheless, GDP per capita is a reasonable, rough-and-ready measure of the standard of living. GDP helps us measure standard of living, but how do we know how the economy is doing?
Detailed explanation-4: -Real GDP per capita removes the effects of inflation or price increases. Real GDP is a better measure of the standard of living than nominal GDP. A country that produces a lot will be able to pay higher wages. That means its residents can afford to buy more of its plentiful production.