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Real GDP per capita is a better indicator of what?

Answer and explanation

Correct answer: Average real living standard

Real GDP per capita is calculated by dividing inflation-adjusted output by population. It therefore indicates the average amount of real production available per person and is commonly used as a broad indicator of average material living standards. Option A is correct. It is not a measure of population alone, the price level alone, or tax collection. However, it is only an average and does not fully capture inequality or non-market well-being.

Related tags

Real-Gdp-Per-CapitaLiving-StandardGdp-And-WelfareReal-OutputGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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