Which of the following is the indicator for standard of living?
A) nominal GDP
B) real GDP
C) real GDP per capita
D) productivity

Question

Which of the following is the indicator for standard of living?  
A) nominal GDP 
B) real GDP 
C) real GDP per capita 
D) productivity

Quizplus · Accepted Answer

Real GDP per capita is the best indicator for standard of living as it takes into account the size of the population and adjusts for inflation. Nominal GDP does not account for inflation and productivity only measures output per unit of input, which may not necessarily reflect the standard of living. Real GDP reflects the size of the economy, but does not account for population.

Which of the Following Is the Indicator for Standard of Living