Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Nominal GDP
B
Inflation Rate
C
Income Distribution
D
Population Growth
Understanding the Answer
Let's break down why this is correct
Answer
Real GDP per capita is a measure that helps us understand how productive an economy is by showing the average economic output per person. Similarly, living standards can be understood through a measure called quality of life, which considers not just income but also health, education, and overall well-being. For example, a country might have high real GDP per capita, indicating strong economic productivity, but if it lacks good healthcare and education, the living standards could still be low. Therefore, while real GDP per capita reflects economic productivity, quality of life reflects living standards. Essentially, both measures give us important insights about how well people are doing in society.
Detailed Explanation
Income distribution shows how money is shared among people. Other options are incorrect because Nominal GDP measures total economic output without adjusting for inflation; The inflation rate tells us how prices change over time.
Key Concepts
Real GDP per Capita
Economic Productivity
Living Standards
Topic
Calculating Real GDP per Capita
Difficulty
easy level question
Cognitive Level
understand
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