Multiple Choice Question (1 Viewer)

[michaeljennings]

What is the best indicator when changes in GDP per capita occur
a) Changes in the quality of life
b) Chances in income distribution
c) Changes in economic growth
d) Changes in environmental quality

The answer is A which i can understand but what is wrong with C?

 

[Bobbo1]

GDP per capita = GDP/population... so if the population of the country decreases (migration outwards, or people dying) and GDP stays the same, there's no effective change in eco growth but the GDP per capita increases = increased quality of life

 

[haiderr]

with all due respect, Bobbo1 i do not get your explanation...increased quality of life is related to education/literacy rates, health facilities and medication advancement etc...if more people are migrating outwards or are dying, that is an indication of poor quality of life...at the same time if there is no change in eco growth, its telling you something about the economy - its obviously not growing...

the answer to the question is that fundamental economic theory suggests that economic "development" is a better measure than economic growth as it includes both qualitative and quantitative measures...whereas economic growth is only a quantitative measure...quality of life (or standard of living) is a measure of eco development and hence is the best measure.

hope that helps

 

[cloudstr1f3r]

Since it's GDP Per Capita, it deals with GDP in particular segments in an economy.

Thus, if GDP per capita increases, logically then income would increase. GDP per capita is not a measurement of economic growth, the CHANGES of Real GDP is the measurement of economic growth, and thus GDP per capita increases are either measuring income or quality of life..... Hope I'm right

 

[haiderr]

cloudstr i think you are right and very well said...because measures of quality of life include health, literacy rates etc but they also include income (GDP per capita)..if my income increases then all things being equal so will my quality of life.

 

[Economist]

Sorry everyone but it is a bad multiple choice question. The HDI measure quality of life. GDP per capita measure economic growth per person. It tells you nothing about how income is distributed so does not measure quality of life.

If you want proper HSC questions and answers get the Cambrige Checkpoints in Economics.

 

[artosis]

If you want proper HSC questions and answers get the Cambrige Checkpoints in Economics.

Are you just trying to advertise your book or something?
Honestly, I have the HSC checkpoints book and its not THAT great. It is decent. Its just basically a summary of the whole syllabus, ultra compact, and then 2009 and 2010 HSC with answers.
Sadly, its... not really that special tbh.