ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Oil production does not impact the standard of living in a country.
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Oil has created an unlimited amount of jobs for the people decreasing the unemployment rate.
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The standard of living has been improved due to better education, healthcare, roads, and technology.
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The standard of living has not been improved because oil has not raised the GDP per capita in those countries.
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Detailed explanation-1: -The improvement in living standards is the direct result of econom-ic growth. Our per capita consumption of goods and services has increased because our per capita production (or output) of goods and services has increased. When we produce more, we can consume more.
Detailed explanation-2: -Standard of living is the amount of goods and services available to purchase in a country. Real GDP per capita and Gross National Income per capita are the two most common ways to measure the standard of living. GDP measures all transactions within a country’s boundary, while GNI includes those who live abroad.
Detailed explanation-3: -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-4: -Standard of living reflects the objective dimension of how well the basic needs of life are met, while quality of life is the patient’s own subjective view of well-being and satisfaction with her/his life.