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What is the primary way economists measure standards of living?

a) Gross Domestic Product (GDP) per capita
b) Unemployment rate
c) Consumer Price Index (CPI)
d) National debt

User Izak
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Final answer:

Economists primarily measure standards of living using gross domestic product (GDP) per capita, which is the GDP of a country divided by its population.

Step-by-step explanation:

The primary way economists measure standards of living is through the gross domestic product (GDP) per capita. GDP per capita represents the value of all goods and services produced within a country in a year, divided by its population. This metric is a widely accepted indicator for comparing the economic prosperity and quality of life between different nations. Although no single number can comprehensively represent a term as multifaceted as 'standard of living,' GDP per capita serves as a reasonable benchmark.

Using GDP per capita as a measure helps to understand not only the size of a nation's economy but also gives insight into the potential wealth and resources available to the average individual in that country. It's a measurement of economic activity and can hint at whether citizens can access goods and services that contribute to their overall well-being.

User David Kullmann
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