Question

Real GDP per capita is much higher than it was 100 years ago . Why might living standards have increased less than this increase in real GDP per capita? Select one : Because environmental problems like climate change have become much worse over time b . Because prices have risen over time . All of these are true d . Because prices have fallen over time e Because we have new goods that even the richest people didn’t have in the past , particularly new medicines and new forms of healthcare . f . None of these are true

Answer 1

Answer - Option B

Because prices have rises over time

The rise in the price overtime will reduce the value of the per capita income and hence the rise in the living standard will be lesser than the actual increase in real GDP because lesser can be purchased due to increased prices.

Fall in prices would have been beneficial , environmental factors would have the impact as much as the price changes have , the medicines are not directly responsible for the per capita income and living standards. Hence option B will be true.