Question

When discussing economic growth, it is often useful to focus on ____________, to avoid studying changes in the size of GDP that represent only having more people in the economy, and focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis.

a.) economic growth
b.) GDP per capita
c.) living standards
d.) consumption and expenditures

Answer 1

Answer:

Option (b) is correct.

Explanation:

GDP per capita

GDP per capita is an indicator of the standard of living per person in a particular nation. It is calculated as dividing the overall GDP of a nation by its overall population.

GDP per capita tells us about the approx income of a particular individual. If a country has a lower per capita GDP then that country is having the lower living standards and if a nation has a higher GDP per capita then this will indicate that this country is having higher living standards.

Hence, most of the country have focused on GDP per capita.