A reasonable measure of the standard of living in a country is

Question

a. nominal income per person.
b. real income.
c. the growth rate of nominal income per person.
d. nominal income.
e. real income per person.

Answer 1

The best choice among the options for measuring the standard of living in a country is:

e. real income per person.

Real income per person adjusts nominal income for inflation, providing a more accurate representation of the purchasing power and living standards experienced by individuals in that country. Nominal income does not account for changes in price levels, making it a less reliable indicator of actual living conditions.