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.
Frequently asked questions
What is the correct answer to this question?
Average real living standard
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
