Question

In measuring changes in the standard of living of a country, economists rely heavily on comparisons over time of real GDP per capita because: ANSWER Unselected despite its well-known flaws, it is the best means we have of comparing the performance of an economy over time Unselected it includes the value of all production and satisfaction factors in the economy Unselected it is a very precise, almost perfect measure of well-being Unselected I DON'T KNOW YET

Answer 1

despite its well-known flaws, it is the best means we have of comparing the performance of an economy over time

Step-by-step explanation:

Standard of living = real GDP per capita = real GDP / population

the higher the real GDP per capita of a country, the higher the standard of living.

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

The GDP has some flaws and some of these flaws are that some items are omitted in the calculation of GDP :

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products