If you compare the higher income countries with the lower income countries, you find that the...

If you compare the higher income countries with the lower income countries, you find that the people in the higher income countries tend to eat out more and the people in the lower income countries tend to consume more home-cooked meals. In your own words, explain how it may produce misleading comparisons of the standards of living between the higher income and the lower income countries.

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Expert Solution

Answer:
It may produce misleading comparisons of the standards of living between higher and the lower income countries based on above fact is because of following reasons:

Standard of living in simple terms is defined as the condition in which a person is living and enjoying his life. Whether he is facing any economic issue in purchasing the product he/she desires. Just because people in lower income countries preferred to eat at home doesn't mean their standard of living is lower than their counterpart.
Homemade food is healthier and prepared hygienically compare to eat out food most of the time, and in higher income countries their way of living is made in such a way they eat out. It has nothing to do with standard of living.
Also, it's usually costly to eat out than to eat healthy food in home, so even though people in lower income have less money they have more option to spend on other things than to eat out which may affect health as well.
Also, most of the time goods and services available in lower income countries are cheaper compare to higher income countries, which is not taken into account in above comparison.

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Rahul Sunny answered 3 months ago

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