ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The standard of living is derived from per capita GDP, determined by dividing GDP by the number of people living in the country. On a broad level, GDP can, therefore, be used to help determine the standard of living.

Detailed explanation-2: -GDP per capita is the sum of gross value added by all resident producers in the economy plus any product taxes (less subsidies) not included in the valuation of output, divided by mid-year population. Growth is calculated from constant price GDP data in local currency.

Detailed explanation-3: -Yet there is a generally accepted measure for standard of living: average real gross domestic product (GDP) per capita. Let’s break it down piece by piece: GDP measures annual economic output-the total value of new goods and services produced within a country’s borders. Real GDP is the inflation-adjusted value.

Detailed explanation-4: -Standard of living is generally measured using per capita GDP. Standards of living are usually higher in developed countries. In fact, basic measures of standard of living, such as per capita GDP, are often used to define the differences between more and less developed countries.

Detailed explanation-5: -Gross Domestic Product (GDP) per capita and per capita income are common methods of measuring a country’s standard of living. The measure of the average income of each person in a country is known as per capita income.