Which of the Following Statements Is the Best Justification of the Use

question 9

Multiple Choice

Which of the following statements is the best justification of the use of GDP per capita to compare welfare between nations?

• A) GDP per capita is commonly used as a measure of welfare so it must be a valid measure.
• B) GDP per capita is independent of the country's currency so it is not subject to change due to variations in exchange rates.
• C) GDP per capita is calculated in a consistent and reliable way so it is not subject to measurement errors.
• D) GDP per capita is highly correlated with alternative measures of quality of life .

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Definitions:

Cohesiveness

The degree to which members of a group or organization are united in their pursuit of common goals and exhibit loyalty to each other.

Society

A group of individuals living together in a more or less ordered community, sharing cultures, traditions, and values.

Industrialization

The development of industries in a country or region on a wide scale.

Wage Gap

The difference in earnings between different groups of people, often based on gender, race, or occupation.