Question

And how do we compare economic well-being

across countries?​

Answer 1

Answer:

GDP is the measure most often used to assess the economic well-being of a country. Besides measuring the pulse of a country, it is the figure used to compare living standards in different countries.

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Answer 2

1. Since GDP is measured in a country’s currency, in order to compare different countries’ GDPs, we need to convert them to a common currency.
2. One way to compare different countries' GDPs is with an exchange rate, the price of one country’s currency in terms of another.
3. GDP per capita is GDP divided by population.

GDP is the measure most often used to assess the economic well-being of a country. Besides measuring the pulse of a country, it is the figure used to compare living standards in different countries.

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