In: Economics
The United Nations Human Development Report gives the following data for real GDP per person in 2014: China, $12,547; Russia, $22,352; Canada, $42,155; United States, $52,947. Other information suggests that household production is similar in Canada and the United States and smaller than in China and Russia. The underground economy is larger in Russia and China and a similar proportion of each of these economies. Canadians and Americans enjoy more leisure hours than do the Chinese and Russians. Canada and the United States spend significantly more on the environment than do China and Russia. In which pair (or pairs) of countries is it easiest to compare the standard of living? And in which pair (or pairs) is it most difficult? Explain why. The standard of living can be easily compared ______. A. between China and Canada because they have a similar land size B. among all four countries because real GDP per person includes a reliable measure of income, household production, the underground economy, leisure hours, and the environment C. among none of the four countries because they are too different D. between Russia and the United States because they are both super powers E. between China and Russia or between Canada and the United States, because household production, the underground economy, leisure hours, and the environment are similar in each pair The standard of living cannot be easily compared in ______ and ______ because ______. A. China; Canada; one is much bigger than the other B. either China or Russia; either Canada or the United States; in each pair household production, the underground economy, leisure hours, and the environment are different C. Russia; China; because one is much bigger than the other D. either China or Russia; either Canada or the United States; in each pair the population densities are different E. Canada; the United States; one is much bigger than the other
Canada and USA or China and Russia are similar and hence easy to compare because they are similar in aspects like household production, Underground economy, leisure hours and environmental spending.
On the other hand comparing US or Canada with China or Russia could be difficult because they differ on almost all aspects.
Leisure hours and environmental spending is significantly higher in US and Canada, widening the gap , so the comparison is difficult.
The standard of living can be easily compared where the per capita real gdp is similar. between China and Russia or between Canada and the United States, because household production, the underground economy, leisure hours, and the environment are similar in each pair . Though through the ranking on the basis of per capita real gdp the comparison of standard of living could be done because the countries have similar per capita real gdp are similar of other grounds as well, the better comparison would be done when comparison is based not only on the real gdp per capita but other factors also(like leisure time and environmental spending)
So answer is option E
The standard of living cannot be easily compared in ______ and ______ because ______.
The standard of living cannot be easily compared in either China or Russia; either Canada or the United States; in each pair household production, the underground economy, leisure hours, and the environment are different
the reason being that though the per capita real gdp is similar and be compared, the other factors like household production and environmental spending is different which makes the comparison difficult.
So answer is option B)
(You can comment for doubts)