Final answer:
Quality of Life is the measure of general well-being including factors like political freedom, safety, and education, unlike Standard of Living, which focuses on wealth and goods. GDP and GNI are economic indicators that do not capture all aspects of Quality of Life. Tools like the OECD Better Life Index are more holistic measures of societal well-being.
Step-by-step explanation:
The measure of the general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment is known as Quality of Life. It is a multi-dimensional concept that takes into account the material circumstances affecting individuals' lives as well as non-material aspects that contribute to human welfare. This differs from Standard of Living, which refers to the level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area, primarily measured by GDP.
Gross Domestic Product (GDP) is commonly used to gauge a society's Standard of Living, but it does not cover non-market activities such as leisure or environmental quality and can miss aspects related Quality of Life. Therefore, initiatives like the OECD Better Life Index have been developed to provide a more accurate representation of well-being in society, beyond the mere economic output.
When seeking to measure the well-being of a society, Gross National Income (GNI) can provide insights into the total income of a country's residents and businesses, regardless of whether the income was obtained inside or outside the country. However, similar to GDP, it is not a complete measure of individual well-being. Lastly, the Social Satisfaction Index does not appear to be a standardized measure used by economists and researchers.