The following are some measures and indicators of comparative living standards;
- Gross Domestic Product
- Life Expectancy
- Per Capita Income
- Literacy Rate
- Productivity Capacity
- Purchasing Power
- Social Amenities
- Sectors of Employment
- Possession of consumer durables
1. Gross Domestic
Product
Gross Domestic Product (GDP )
refers to the total output of goods and services produced by the factors of
production located in a particular country.
2. Life Expectancy
It refers to the average number of years that a person lives
from birth to death. Life Expectancy increases due to social and economic
development in the country.
Life Expectancy is high in developed countries.
3. Per Capita Income
Per Capita Income refers to the Average National Income. PCI
= Total National Income / Total population. PCI indicates the country’s general
prosperity.
Per Capita Income is high in developed countries.
4. Literacy Rate
It describes the percentage of people who have acquired the
basic level of education.
Literacy Rate is high in developed countries.
5. Productivity
Capacity
It describes the extent to which the country can expand its
production of goods and services at full employment of its resources and
technology.
Productive Capacity is high in developed countries.
6. Purchasing Power
It describes the amount of goods and services which can be
purchased by a specified sum of disposable income of a person.
Purchasing Power is stronger in developed countries.
7. Social Amenities
It describes the availability of social services in the
country. More social services are available in developed countries.
8. Sectors of
Employment
It describes the sector in which the labours of the country
are employed. In a developed country more people are employed in the tertiary
sector.
9. Possession of
consumer durables
It describes the extent to which the people of the country
possess durable consumer goods such as refrigerators, motor cars, television
sets etc. In developed countries people possess more consumer durables.
