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Which of the following economic statistics can be used to

compare the standards of living in two countries?
A) GDP
B) Net exports
C) Income per person
D) Population size

1 Answer

5 votes

Final answer:

The GDP per capita is the best economic statistic for comparing the standards of living between two countries, as it normalizes GDP by population size.

Step-by-step explanation:

To compare the standards of living in two countries, the most appropriate economic statistic to use is GDP per capita. This measure takes the gross domestic product (GDP) of a country and divides it by its population size, enabling a comparison of economic welfare or standard of living on a per person basis. It addresses two critical issues when comparing across nations: the need to convert GDP into a common currency and the need to account for differences in population sizes. GDP per capita helps to compare countries with varying population sizes, providing a clearer picture of individual prosperity.

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