Measuring Living Standards with GDP per Capita Quiz
12 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What does GDP per capita measure?

  • Material well-being of the country
  • Total production in the economy
  • Total population of the country
  • Average income per person in the economy (correct)

    • Why is GDP per capita considered a good indicator of the jobs being created?

  • Because it considers changes in technology
  • Because it is calculated on output (correct)
  • Because it shows the distribution of income
  • Because it does not take population into consideration

    • Which limitation of using GDP per capita is mentioned in the text?

  • It considers the distribution of income
  • It takes into account what people can buy
  • It does not consider changes in technology
  • It excludes unpaid work people do for charities (correct)

    • Why might a country with a high GDP per head not necessarily be better off than a country with a low GDP per head?

    <p>Due to fewer products available despite high GDP</p> Signup and view all the answers

    What factor does GDP per capita not take into account when measuring living standards, as mentioned in the text?

    <p>Technology changes</p> Signup and view all the answers

    Why might the GDP per head be inaccurate according to the text?

    <p>Because it only gives average incomes and ignores income distribution</p> Signup and view all the answers

    What is a limitation of using GDP per head as a measure of well-being?

    <p>It does not account for leisure activities, health, and education levels.</p> Signup and view all the answers

    In what situation can an increase in GDP per head not necessarily improve people's well-being?

    <p>When the output rises due to an increase in sales of tobacco, alcohol, or pornographic materials.</p> Signup and view all the answers

    What is included in the Human Development Index (HDI) to compare living standards?

    <p>Average life expectancy at birth.</p> Signup and view all the answers

    Why can comparing GDP per head across countries be unreliable?

    <p>Different countries may have different GDP accounting methods.</p> Signup and view all the answers

    What does the Income index of the Human Development Index (HDI) measure?

    <p>Average national income adjusted for differences in exchange rates and prices.</p> Signup and view all the answers

    Why might an increase in GDP per head after a natural disaster not reflect an improvement in living standards?

    <p>It could be due to political manipulation to show higher GDP.</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser