Which of the Following Represents a Problem with Using Per

question 103

Multiple Choice

Which of the following represents a problem with using per capita GDP to compare standards 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:

Marginal Cost

Is the increase in total cost that arises from producing one additional unit of a good or service.

Ruthlessly Efficient

Operating with extreme efficiency, often at the expense of other considerations such as employee welfare or ethical considerations.

Recognizable Brand Name

A brand name that is widely known among the public and is easily recalled or recognized due to its reputation or marketing.

Monopoly Power

Refers to the ability of a firm or entity to control the market price and output of a product or service, due to lack of competition.