Comparing Two Countries GDP Over Time Is Likely to Be

question 100

Multiple Choice

Comparing two countries GDP over time is likely to be misleading if one wants to determine whether standards of living are better in one country because

• A)the figures need to be adjusted for different types of currency.
• B)the figures need to be adjusted for price changes and population differences.
• C)the figures need to be adjusted to account for production differences.
• D)NDP instead of GDP should be used.

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Definitions:

Leisure

Time spent away from work and essential domestic activities, often used for rest, recreation, or cultural pursuits.

Inferior Good

A type of good for which demand decreases when consumer income rises, in contrast to normal goods, where demand increases with rising income.

Consumer Income

The total amount of income earned by consumers in an economy, including wages, salaries, benefits, and other income sources, influencing their buying power.

Demand Curve

A graph that shows the relationship between the price of a good and the quantity demanded by consumers at various prices.