19
practice testMultiple Choice

Practice Test

Question 19 • World History II

Why is GNI per capita a better measure of standard of living than GDP?

Answer
A
GNI per capita reflects all of the income within the economy.
B
GNI per capita reflects the total market value of goods and services in the economy.
C
GNI per capita represents the value of goods and services in the economy.
D
GNI per capita indicates how much each person makes on average.

Explanation

GNI per capita is gross national income divided by the population, so it estimates the average income per person. That makes it more useful for comparing people’s material standard of living than total GDP, which measures the economy’s overall production. The correct choice is “GNI per capita indicates how much each person makes on average.”

AI-written and checked against the verified answer.

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