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Chapter 19: Q 12. (page 471)

What is the primary way in which economists

measure standards of living?

Short Answer

Expert verified

GDP per capita is the primary way in which economists measure standards of living.

Step by step solution

01

Step 1. Define standards of living.

The amount of money, amenities, and services available to a community or region, instead of an individual, is referred to as the standard of life.

02

Step 2. Primary way to measure standards of living.

The GDP per capita is computed by the ratio of the gross domestic product or GDP and the total population. It is shows the average income of a person in the country.

The value obtained is not an accurate representation but an indicator of the living standard in the country. Thouh this method has been criticized as inaccurate representation of living standard because it only takes into account economic growth while ignoring other things that may affect living standard such as crime and pollution.

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Most popular questions from this chapter

Prepare a chart that compares India, Spain, and South Africa based on the data you find. Describe the key differences between the countries. Rank these as high-, medium-, and low-income countries, explain what is surprising or expected about this data.

What are the major issues with regard to trade imbalances for low- and middle-income countries?

Retrieve the following data from The World Bank database (http://databank.worldbank.org/data/ home.aspx) for India, Spain, and South Africa for the most recent year available:

• GDP in constant international dollars or PPP

• Population

• GDP per person in constant international dollars

• Mortality rate, infant (per 1,000 live births)

• Health expenditure per capita (current U.S. dollars)

• Life expectancy at birth, total (years)

Using the research skills you have acquired, retrieve the following data from The World Bank database (http://databank.worldbank.org/data/ home.aspx) for India, Spain, and South Africa for 2010–2015, if available:

• Telephone lines

• Mobile cellular subscriptions

• Secure Internet servers (per one million people)

• Electricity production (kWh)

Prepare a chart that compares these three countries. Describe the key differences between the countries.

Retrieve inflation data from The World Bank data base (http://databank.worldbank.org/data/home.aspx) for India, Spain, and South Africa for 2011–2015. Prepare a chart that compares India, Spain, and South Africa based on the data. Describe the key differences between the countries. Rank these countries as high-, medium-, and low-income. Explain what is surprising or expected about the data.
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