Which of the Following Is the Best Indicator of the Standard

question 91

Multiple Choice

Which of the following is the best indicator of the standard of living?

• A)nominal GDP
• B)real GDP
• C)real GDP per capita
• D)productivity
• E)productivity per unit of labor

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Definitions:

Maximum-Output

The highest level of production that a company can sustain over the long term without increasing its costs per unit of output.

Mutually Beneficial Exchange

An economic interaction where all parties involved gain or perceive a gain from the transaction.

Comparative Advantage

The ability of an individual or country to produce a good or service at a lower opportunity cost than others, leading to more efficient international trade.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.