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

---

Definitions:

Depreciation Rates

The percentage at which an asset's value is reduced to account for wear and tear over its useful life.

Units-of-activity Method

A depreciation method that allocates the cost of an asset over its useful life based on units of production or use, rather than passage of time.

Straight-line Method

A method of calculating depreciation by evenly allocating the cost of an asset over its estimated useful life.

Salvage Value

The expected residual valuation of an asset at the conclusion of its operational life, commonly included in the calculations for depreciation.