Final answer:
The standard of living is measured by the goods and services that can be purchased, factoring in various socioeconomic indicators. GDP per capita is a common measure but doesn't encompass all aspects of living standards. However, it serves as a rough estimate of the economic wealth and potential quality of life in a country.
Step-by-step explanation:
The standard of living of any country is measured by the output of goods and services people can buy with the money they have. In the last century, the United States has experienced a consistent rise in its standard of living, reflecting the level of wealth accessible for obtaining the material necessities and comforts essential to maintain a particular lifestyle.
The standard of living includes various factors such as income, employment, class disparity, literacy rates, mortality rates, poverty rates, and the affordability of housing. A high standard of living typically signifies a high quality of life, where residents can afford homes, cars, and vacations. Such a standard is a combined outcome of the wealth generated within a country, the distribution of this wealth, and the lifestyle expectations of its citizens.
The Gross Domestic Product (GDP) per capita is often used as an indicator for standard of living. While it doesn't capture all the nuances and varied aspects of the standard of living, it is a reasonable measure for comparing the economic wealth of citizens across countries. In practical terms, migration trends often show people moving from countries with lower GDP per capita to those with higher GDP per capita in search of better living standards.
Although "standard of living" encompasses more than just GDP—it includes all aspects that influence well-being, whether or not they are bought and sold in the market. There are elements vital to the standard of living that GDP does not cover, further supporting the idea that no single number fully captures the complexity of living standards. Nevertheless, GDP per capita offers a rough estimate for a country's living standards.