Read the two statements and choose the correct option.
I. Per capita real income is a better indicator of average living standards than total GDP.
II. A country's GDP can rise while the welfare of most of its people falls.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Per capita real income divides real output by the population, so it shows the average share. I is true.
If gains go to a few and pollution rises, most people can be worse off. II is true.

Ten questions from National Income Aggregates & GDP, at your own pace.

Ten questions from National Income Aggregates & GDP, at your own pace.

Read the two statements and choose the correct option.I. Per capita real income is a better indicator of average living standards than total GDP.II. A country's GDP can rise while the welfare of most of its people falls.