Which of the Following Represents a Problem with Using Per

question 4

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) G DP 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) GDP per capita and other quality of life measures are not correlated.