Running Head: LIMITATIONS OF GDP AS A MEASURE OF STANDARD OF LIVING 1
Standards of Living
Introduction
Standard of living is described as the level of comfort, necessities, material goods and
wealth that is associated with a particular population in a country. The standard of living is
described in terms of various factors such as affordable housing, poverty rate, affordability of
quality health services, inflation rate and class disparity among others. Measures of standard of
living include real income per person that is calculated by dividing the gross domestic product
(GDP) by the population of the country. GDP is used by most countries in the world as a
statistical indicator of country development (Lepenies, 2016)
