"If country A has a higher level of real GDP per person
than country B, then people in Country A must enjoy a higher standard of
economic welfare than people in Country B." Is this statement true or
false and explain your answer.
#Parkin #11edition #GDP #Chapter21
Answer: The statement is false. Factors other than real GDP per person affect economic welfare. For instance, factors such as household production, underground production, leisure time, and environmental quality all affect economic welfare and all are omitted from real GDP per person. Although real GDP per person is an important factor in determining a country's economic welfare, it is not the only factor.
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