Is it possible for GDP to increase but for the standard of living to decrease? Explain.
What will be an ideal response?
Yes. The standard of living can be measured using GDP per capita. GDP per capita is calculated as total GDP divided by total population. It tells the amount of output available for each person on average. If GDP increases but population increases at an even faster rate, then GDP per capita, or the standard of living, will decrease.
You might also like to view...
Which of the following statements is FALSE?
A) The production possibilities curve shows the combinations of goods that can be consumed by a nation after trade and specialization begins. B) The production possibilities curve shows the combinations of goods that can be consumed by a nation before trade begins. C) The production possibilities curve shows the combinations of goods that can be produced by a nation after trade and specialization begins. D) The production possibilities curve shows the combinations of goods that can be produced by a nation before trading begins.
Stefano has just completed an original oil painting. After considering the costs for brushes, paint, canvas, and the value of Stefano's labor time, the marginal cost of the painting is $1,000. Lucky Stefano. One art lover paid him $1,500
How much producer surplus did Stefano obtain? A) The amount of producer surplus cannot be determined from the information given. B) $1,500 C) $1,000 D) $500
What is meant by direct regulation? Give a few examples of direct regulation
What will be an ideal response?
Suppose that the current equilibrium price of gasoline is $3.50 per gallon and that the government passes a law that requires the price to be no more than $3 per gallon. What will be the effects?
What will be an ideal response?