Consider the Following Statement: "An Increase in Per Capita Income

question 92

Multiple Choice

Consider the following statement: "An increase in per capita income guarantees an increase in living standards." Is this statement true or false,and why?

• A)False.Living standards have no statistical correlation with per capita income,and so such a guarantee is not possible.
• B)False.Per capita income could be increasing while at the same time living standards are deteriorating due to,for example,environmental degradation or a decline in social cohesion.
• C)True.The measure of living standards is a subset of per capita income,so when one measure increases,the other measure must also increase.
• D)True.Per capita income is the most important contributor to living standards.
• E)Impossible to determine because "living standards" is a subjective concept that cannot be measured.

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Definitions:

Environmental Influences

External factors surrounding an individual that significantly impact their behaviors, development, and life choices.

Personality Traits

Characteristic patterns of thoughts, feelings, and behaviors that make a person unique and are consistent across different situations and times.

Identical Twins

Twins who originate from the same fertilized egg, sharing the same genetic material and typically, but not always, appearing very similar.

Fraternal Twins

Twins that are developed from two different eggs fertilized by two different sperm, making them genetically unique individuals.