Q – Read and summarize the following written text in your words.
A country’s standard of living generally depends on the size of its national income. Standards of living are measured by such things as the number of cars, televisions, telephones, computers, washing machines, and so on, for every one thousand people. There is, however, no standard international index, which is why national income figures are used as a substitute. But the use of these figures to compare the standard of living between countries needs to be done carefully, because they are, at best, only a rough guide which can be misleading. The main problem here is that it is necessary to have a common unit of measurement if any sort of comparison is to be made at all. It has become the custom to use the dollar, and each country’s currency is converted at its official exchange rate into a national income figure in dollars. Now, since the exchange rate is often set at an artificial level in relation to dollars, you are likely to end up with a figure that is useless for your purposes.
Answer- Due to the lack of a uniform international index, national income statistics are typically used to compare and evaluate living standards. However, because each country’s exchange rate is arbitrarily controlled, this can cause the results to be deceptive and meaningless.
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