Definition
- Standard of living
- The standard of living includes all the elements that affect people's well-being, whether they are bought and sold in the market or not.
- Not to be confused with: GDP per head
- GDP per head is the value of a country's gross domestic product divided by the number of people who live there.
Test yourself
What is the difference between standard of living and GDP per head?
GDP per head measures market output per person; the standard of living also counts what markets leave out.