Discuss whether GDP per head (or per capita) is the best way to compare living standards in different countries.
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Answer:
No, GDP is not the best way to compare living standards in different countries.
Explanation:
Since, GDP excludes some importance services such as services of a housewife, nursing by parents to its child but if these services would have been done by someone else's payments would have been made
GDP may include illegal activities like smuggling which reveals a positive in level of income but economic welfare is degraded
GDP includes money value of those goods and services which are being produced by MNCs but it ignores the fact that big share of the profit is driven out from the domestic country
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