Which Statement Best Explains the Importance of Real GDP Per

question 162

Multiple Choice

Which statement best explains the importance of real GDP per person?

• A) It is a useful measure of economic growth.
• B) It is a useful measure of the health of citizens.
• C) It is a useful measure of the cost of living.
• D) It is a useful measure of well-being.

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Definitions:

Income Distribution

A measure of how a nation’s total GDP is distributed amongst its population.

Incentive

something that motivates or encourages an individual or entity to perform or act in a certain manner.

Poverty Line

A threshold income level below which an individual or household is considered to be living in poverty, varying by country and adjusted for family size.

Poverty Rate

The percentage of the population living below the national poverty line, indicating the proportion of people with income insufficient to meet basic needs.