Measuring national prosperity: Exports, imports, trade balance, investments, and bank balances are not definitive prosperity indicators; despite larger pre–World War II exports, England's national prosperity is greater today because the average incomes of ordinary workers have risen; which conclusion is best supported?
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AA country's economic standard is best adjudged by per capita income.
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BA country's balance of trade is the key determinant of prosperity.
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CA nation's economy strengthens only when exports increase.
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DEnglish trade has continually increased since the Second World War.
Answer
Correct Answer: A country's economic standard is best adjudged by per capita income.
Explanation
Given data
- Traditional macro indicators (exports, trade balance, etc.) are not decisive measures of prosperity.
- England has higher prosperity now with lower exports than earlier because average worker incomes have risen.
Concept/Approach (people-centric metric)Prosperity is reflected in the material well-being of the average citizen; hence income per person, i.e., per capita income, is a better index than trade aggregates.
Step-by-Step reasoning1) Counterexample: higher past exports yet lower prosperity then vs. now.2) Explanation: current higher incomes of average workers.3) Inference: per capita income aligns with lived prosperity better than trade metrics.
Verification/Alternative checkOptions tying prosperity to trade balance or export growth contradict the passage's example; claims about continuous trade increases are not stated.
Final AnswerA country's economic standard is best adjudged by per capita income.