Standard of Living

Topics: Gross domestic product, Quality of life, Economics Pages: 2 (617 words) Published: October 9, 2011
In my opinion, national income is a good indicator to measure the standard of living. The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and input for a given country's economy GDP is the total market value of all final goods and services produced within a country in a given period of time. GDP is the best single measure of the economic well-being of a society. GDP per person tells us the income and expenditure of the average person in the economy. So the point at here is higher GDP per person indicates a higher standard of living.

Higher income of people can make they have more money to buy thing to improve their standard of living. Sometimes the things such as the goods can improve their live. Example in food they could buy the expensive seafood to be their eatable that they never buy before. They also can install ASTRO be the more fun and entertainment. They also can live at bigger house. They also can access to the internet by personnel computer to gain more knowledge to improve their knowledge level. That all is an example for increasing of standard of living. The argument in using GDP is not that it is a good indicator of standard of living, but that standard of living increase when GDP per capita increases. This makes GDP for standard of living, rather than a direct measure of it. GDP per capita can also be seen as a labour productivity. As the productivity of the workers increases, employers must compete for them by paying higher wages. Conversely, if productivity is low, then wages must be low or the businesses will not be able to make a profit. GDP per capita is often used as an indicator of standard of living in an economy. The advantages to using GDP per capita as an indicator of standard of living are that it is measured frequently in that most countries provide information on GDP on a quarterly basis. GDP is available for practically every country in the world, that means allowing crude...
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