4. How can GDP per capita and poverty rates indicate standards of living in each system?

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Magdalena Walls

26 October, 19:41

4. How can GDP per capita and poverty rates indicate standards of living in each system?

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Jaylin Peck · Answer 1

When GDP per capita is lower, the poverty rate will tend to be higher. People, on average, will be producing less in that economy as well as being paid less for what they do produce. This will lead to a lowered standard of living. Economies with lower poverty rates will have higher per capita GDP and better standards.