12 Questions
What does GDP per capita measure?
Average income per person in the economy
Why is GDP per capita considered a good indicator of the jobs being created?
Because it is calculated on output
Which limitation of using GDP per capita is mentioned in the text?
It excludes unpaid work people do for charities
Why might a country with a high GDP per head not necessarily be better off than a country with a low GDP per head?
Due to fewer products available despite high GDP
What factor does GDP per capita not take into account when measuring living standards, as mentioned in the text?
Technology changes
Why might the GDP per head be inaccurate according to the text?
Because it only gives average incomes and ignores income distribution
What is a limitation of using GDP per head as a measure of well-being?
It does not account for leisure activities, health, and education levels.
In what situation can an increase in GDP per head not necessarily improve people's well-being?
When the output rises due to an increase in sales of tobacco, alcohol, or pornographic materials.
What is included in the Human Development Index (HDI) to compare living standards?
Average life expectancy at birth.
Why can comparing GDP per head across countries be unreliable?
Different countries may have different GDP accounting methods.
What does the Income index of the Human Development Index (HDI) measure?
Average national income adjusted for differences in exchange rates and prices.
Why might an increase in GDP per head after a natural disaster not reflect an improvement in living standards?
It could be due to political manipulation to show higher GDP.
Test your knowledge on measuring living standards using GDP per capita with this quiz. Learn about the merits of using GDP per capita as an indicator of a country's economic well-being.
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