Question

Country A and Country B happen to have the same GDP per capita. The standard of living is said to be higher in Country A than in Country B. This could be because ________.

A) the workforce in Country A is relatively bigger

B) productivity is relatively greater in Country A

C) the same goods and services are relatively more costly in Country A

D) high income disparity in Country B prevents its GDP per capita from giving a full picture of the well-being

of its people

Answer 1

The GDP per capita can be the same for the two countries but their standard of living maybe not the same

Standard of living can be said when people in an economy is free of income disparity and all the wealth, education, equality available to every class of the society. For example, there is a very high-income disparity in INDIA. Recently in a report says top 1% of people having around 60% of the total wealth of the country

So income disparity is a major player for less satandard of living.

Therefore option D.