Multiple choice

Changes in the standard of living in a country are best reflected in changes in

  1. GNP at current prices

  2. national income at current prices

  3. per capita income at current prices

  4. per capita income at constant prices
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Per capita income at constant prices best reflects changes in standard of living because it adjusts for both population growth and inflation. Current prices include inflation effects. GNP and national income are aggregate measures, not per capita.

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