Question

Explain with reasons why GDP per capita is an appropriate indicator for measuring the standard of living of nationals of a country

Answer 1

GDP per capita is an appropriate indicator because it shows the citizens' ability to afford to buy products and services provided in the country's market. When GDP per capita is high then it means that the people have a higher buying power and vice versa.

It also shows the country's productivity and industrial advancement that translates to better wages to the people employed by the firms, enabling them to afford more products and services.