GDP at constant market prices would not be a good indicator to compare the living standarden of two countries when the ______ of the two countries is different.
(1) population size
(2) income distribution
(3) inflation rate
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1) ,(2), (3)
Thanks
Ecom past paper II 2006 Q50
2007-04-19 6:54 am
回答 (1)
2007-04-19 6:41 pm
✔ 最佳答案
The answer is A(1) The greater the population, the more people share the GDP and the less each person can get on average.
(2) If the high GDP is contributed by only a samll group of people, then the general public may still remain low in living standard even though the GDP level is high.
(3) Since GDP has been adjusted to constant market price, the effect of inflation between the base year and the current year is eliminated.
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