Explain why GDP per capita (by itself) is NOT a good measure of living standards. What...

Explain why GDP per capita (by itself) is NOT a good measure of living standards. What are some other factors that are important for determining living standards, which are not included in GDP per capita? Explain why GDP per capita AND these other factors should all be considered when evaluating living standards.

Expert Solution

Answer - GDP is the measure of the monetary value of the final goods and services produced in the domestic economy. Gdp per capita is the average income of every person in the economy. But this income is not the measure of welfare in the economy. The living standaed of the person depends a lot upon many other factors such as the life expectancy , quality of life he lives , the environment in which he lives , his level of happiness etc.

The person has to live with all these factors . His life expectancy will decide how many years will he live , if he is likely to live for short period of time , he will not be happy with it. The life may be full of stress. The environmental pollution may be high leading to lot of health problems. These will all lead to loss of income as money will be wasted on extra health expenditures. Hence , only the monetary income or per capita GDP is not the only measure of good standard of living. These factors should also be considered along with GDP per capita

Rahul Sunny answered 2 years ago

Why is per capita GDP only an imperfect measure of a country’s standard of living? Provide...

Why is per capita GDP only an imperfect measure of a country’s standard of living? Provide examples and explain your answer. What is the difference between a series of economic data over time measured in nominal terms versus the same data series over time measured in real terms? How do you convert a series of nominal economic data over time to real terms? Provide examples and explain your answer.

Explain why per capita GDP might be an unreliable indicator of the standard of living. Please...

Explain why per capita GDP might be an unreliable indicator of the standard of living. Please discuss it in combination with other factors you think may also be relevant to the standard of living. Please use examples to support your answers

Using GDP per capita to compare living standards in different countries a. does not account for...

Using GDP per capita to compare living standards in different countries a. does not account for big differences in the distribution of income in these countries. b. overlooks the fact that China has a huge population and Norway is very small. c. is such a poor measure that economists do not use it anymore. d. shows you that America has the highest standard of living in the world. Owning stock in a company a. represents part ownership in the company....

craft an initial response that analyzes the intersection between GDP per capita growth and living standards

A. Explain why GDP is an effective measure of living standards. B. Discuss how quality-of-life measures...

A. Explain why GDP is an effective measure of living standards. B. Discuss how quality-of-life measures may be determined and measured. C. Explain why aspects of our quality of life in the United States may be difficult to compare with other countries around the world.

1.What are the drawbacks in using GDP per capita as a measure of poverty? 2.What are...

1.What are the drawbacks in using GDP per capita as a measure of poverty? 2.What are the most important problems currently affecting educational systems in developing countries?

What is the difference between GDP and GDP per capita? When and why would an economics...

What is the difference between GDP and GDP per capita? When and why would an economics what to use GDP vs GDP per a capita. In the example below let’s say that the economy’s real GDP is $50,000 in year 1 and $55,000 in year 2. What is the growth rate of its GDP? Assume that population was 100 in year 1 and 105 in year 2. What is the growth rate in GDP per capita? please only answer if...

Why large population decreases GDP per capita ? And what is the relation between Real GDP...

Why large population decreases GDP per capita ? And what is the relation between Real GDP and GDP per capita ?

The long-run growth is measured as the increase in real GDP per capita and this measure...

The long-run growth is measured as the increase in real GDP per capita and this measure has changed over time and it also varies across countries. A country’s standard of living depends on its ability to produce goods and services (productivity). How do we measure long-term economic growth of a country? What are the key determinants of long-run economic growth? What is the relationship between economic growth and productivity? What is the major source of growth in labor productivity?

Explain why we argue that GDP per capita for Ireland would not be expected to equal...

Explain why we argue that GDP per capita for Ireland would not be expected to equal it's GNI per capita. please indicate which measure is larger / smaller, and why.

Question