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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?

Difficulty: Medium

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 reasoning
1) 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 check
Options tying prosperity to trade balance or export growth contradict the passage's example; claims about continuous trade increases are not stated.


Final Answer
A country's economic standard is best adjudged by per capita income.

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