Which of the Following Represents a Problem with Using Per

question 40

Multiple Choice

Which of the following represents a problem with using per capita GDP to compare standard of living between less-developed and industrially advanced countries? ​

• A) ​GDP per capita does not take into account differences in population between countries.
• B) ​GDP is particularly difficult to measure in industrially advanced countries because a much larger percentage of economic activity occurs outside of officially measured market activity than in less-developed countries.
• C) ​GDP per capita will overstate the prevailing standard of living for the average person in countries with extreme levels of income inequality.
• D) ​None of the above are correct.

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Definitions:

Net Advantage to Leasing

The total financial benefit that a company receives from leasing assets rather than purchasing them, taking into account all costs and savings.

CCA Class

Denotes the category of depreciable property a business asset falls into in Canada, determining the rate of depreciation for tax purposes.

Net Advantage to Leasing

The total financial benefit of leasing an asset, comparing the costs of leasing versus buying.