Economics 9708 · AS & A Level · 6.4

6.4 — practice question

Gross Domestic Product (GDP) per head is an indicator sometimes used to compare the living standards of different countries. GDP is converted into a common currency using market exchange rates. What might cause this indicator to overstate the relative position of a country?

  • Aa high level of female participation in the labour force
  • Ba high level of foreign ownership in domestic industry
  • Ca high level of subsistence farming
  • Drelatively low hours worked by the labour force

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