Comparing Standard of Living and Quality of Life Between Countries Using GDP

-The nation’s GDP is a good measure of its economic well being and progress because it represents the total value of all goods and services produced in an economy, and what a country produces and what it consumes are nearly identical.

Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most people receive only a small share of the total. There are many advantages and disadvantages associated with the inequitable distribution of income.

Income and wealth distribution: comparing the differences in levels of income and wealth between different social groups help measure inequalities in society. The income is a regular flow of money earned by someone working or from someone’s benefits, pension or their savings. Wealth is defined on property, shares or other belongings that could be sold to make an income. This is very hard to measure accurately and to

The issue of income inequality in the United States is complicated and does not have a definite answer. Income inequality can be measured in a few different ways. The first measurement for the income inequality in a country is to look at the percentages on households and group them into income categories, called distribution by income category. The second measurement for income inequality is called distribution by quintiles or fifths. This is when you divide the total number of people, households, families into five groups called quintiles to examine the percentage of total before tax income received by each quintile. Each quintile would then be ordered by income and households in the category.

First we must define what exactly income inequality really is and that is according to Definition of ‘Income Inequality’ (2015) said to be unequal income distributed to household or individual across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population. For example,

Gross domestic product is the market value of final goods and services produced within a country in a given period. Which this is commonly considered an indicator of the standard of living within a country. Real GDP on the other hand is measure of the value of economic output that adjust for price changes. Nominal GDP is a gross domestic product figure that has not been

One measure that has been used to measure income distribution in Australia is provided by the income shares going to groups of people at different points in the income distribution. In 2011-12, 10.4% of total equivalised disposable household income went to the people in the low-income group and 39.5% went to the high income group which relates to 20% of the population.

Income and wealth inequality refers to the degree to which income is unevenly distributed among people in an economy. The share of total income received by different groups measures inequality, this visually represented in the Lorenz curve. The line of perfect equality bisects the graph with the percentage of income

The average household income in the United States is, in fact, one of the highest in the world. Unfortunately, does not provide information about income inequality. There are two ways to measure income inequality: distribution by income category and distribution by quintiles. Distribution by income category involves looking at the percentages of households in a series of income categories. Distribution of quintiles involves dividing the total number of households into five equal groups or quintiles and to compare it with the percentage of personal income. The Lorenz Curve is a way to display the quintile distribution. In a graph showing the Lorenz curve, there is one straight, up-sloping diagonal line that represents a perfectly equal distribution of income, and a second curve of the actual quintile data that becomes the Lorenz curve. The space in between the two lines represents the amount of income inequality there is. This information can then be converted into a Gini ratio which is the numerical

Gross Domestic Product, also known as GDP, is defined as the dollar value of all final goods and service produced within the border of a country during a specific period of time, typically in one year. GDP measures the value for the whole country, and it also changes quickly. We can take a look at the trends of US GDP in the website of the U.S. Bureau of Economic Analysis.

Income inequality has been a major concern around the world, and it mainly links to how economic metrics are distributed among individuals in a country. Economists generally categorise these metrics in wealth, income and consumption. Wilkinson and Picket (2009) showed in their studies that inequality has drawbacks that lead to social problems. This is because income inequality and wealth concentration can hinder or delay long term growth. In 2011, International Monetary Fund economists showed that less income inequality increased the duration of countries’ economic growth spells more than free trade, low government corruption, foreign investment or low foreign debt (Berg and Ostry, 2011).

economists have included economic background of the people in the society as another form of

GDP is the market value of all final goods and services produced within a country in a given period of time. GDP is basically the measure of a nation's total income and is an important tool in explaining a single society's economic well-being (Mankiw, 2009).

GDP consists of Gross (before taking into consideration the depreciation in the value of the product), Domestic (within the borders of a country) and Product which simply means a good or service. So what does it all mean when all these three factors are interlinked? GDP is simply the market value of all the final goods and services produced within a country in a given time period – usually a year (Parkin et al. 2005: 438).

In the other hand, Russia has a GDP per capita of 14,037US$, considered as high income for Russians. (The World Bank 2014)