Discuss the usefulness of national income statistics in comparing the living standards of two countries
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Reasons why GDP data may give a distorted picture of living standards in a country:
Bill Gates on Alternative Measures of the Standard of Living
The Human Development Index uses health and education statistics in addition to GDP.
The UN's Multidimensional Poverty Index uses 10 indicators; including nutrition, sanitation, and access to cooking fuel and water.
By using purchasing power parity, which measures the cost of the same basket of goods and services in different countries, economists can adjust GDP to gain better insight into living standards.
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