Standard of living
Definition. Standard of living refers to the level of material and non material wellbeing enjoyed by people in an economy. The material dimension covers the quantity of goods and services consumed, often proxied by real national income per head, while the non material dimension covers factors such as health, leisure, and the environment.
Real gross domestic product per capita is a common indicator but omits income distribution, non marketed output, and quality of life, so it can be a misleading measure on its own.
This term belongs to Standard of Living in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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