Econs - 5.1

Question 1

standard of living - definition

Answer 1

• social and economic wellbeing of individuals in a country at a particular point in time

Question 2

2 main measures / indicators of living standers

Answer 2

1. GDP per head / GDP per capita / GDP per person
2. Human development index (HDI)

Question 3

GDP per head - advantages

Answer 3

• higher GDP = people have more to spend on goods & services
• relatively easy to calculate

Question 4

GDP per head - disadvantages

Answer 4

• size of population is ignored