(a) Real GDP growth can contribute to an improvement in the standard of living because it indicates an increase in the availability of goods and services. Higher real GDP growth typically leads to higher incomes, which allows people to purchase more goods and services, access better healthcare and education, and enjoy a higher quality of life. It also creates more employment opportunities, reducing unemployment and increasing economic security.

(b) Two limitations of using real GDP growth as a measure of well-being are:

• Income Inequality: As mentioned previously, real GDP growth doesn't reflect how the benefits of that growth are distributed. A country can have high GDP growth, but if the wealth is concentrated in the hands of a few, the majority of the population may not experience a significant improvement in their living standards.
• Non-Market Activities: Real GDP growth doesn't account for valuable activities that don't involve market transactions, such as household work, volunteer work, and leisure. These activities contribute to well-being but are not captured in GDP figures.

(c) One additional statistic that could be used to provide a more comprehensive assessment of a country's standard of living is the Human Development Index (HDI). The HDI considers factors such as life expectancy, education levels (mean years of schooling), and per capita income to provide a more holistic measure of well-being than real GDP growth alone. It offers a broader perspective on a country's progress beyond just economic output.

This statement is not entirely accurate. While an increase in the quantity of resources (e.g., natural resources, labour, capital) can certainly contribute to economic growth, it doesn't automatically guarantee it. The impact depends on how effectively those resources are utilized. Economic growth is an increase in the real output of goods and services in an economy over a period of time. The quantity of resources is a necessary, but not sufficient, condition for growth.

How an increase in resources can cause growth:

• Increased Production Potential: More resources mean a greater capacity to produce goods and services. This can lead to higher GDP.
• Specialisation and Division of Labour: A larger resource base allows for greater specialization, leading to increased efficiency and productivity.
• Technological Advancements: More resources can support investment in technology, further boosting productivity.

Factors that limit the impact of increased resources:

• Lack of Capital: Even with abundant resources, a lack of capital (machinery, equipment) will limit output.
• Low Skills/Education: If the workforce lacks the skills to effectively use the resources, productivity will suffer.
• Inefficient Allocation: Resources must be allocated efficiently to productive uses. Misallocation can negate the benefits of increased quantity.
• Poor Infrastructure: Inadequate infrastructure (transport, communication) can hinder the effective use of resources.

Conclusion: An increase in the quantity of resources is a positive factor for economic growth, but its impact is contingent on other factors such as capital, skills, efficiency, and infrastructure. Without these supporting elements, the potential for growth may not be realised.

GDP has several limitations as a measure of national well-being:

• Does not account for income inequality: GDP only measures the total output, not how that output is distributed. A high GDP can mask significant income inequality.
• Does not account for environmental degradation: GDP doesn't factor in the costs of pollution, resource depletion, or climate change, which negatively impact well-being.
• Does not account for non-market activities: As mentioned earlier, unpaid work and leisure are not reflected in GDP.
• Does not account for health and education: GDP doesn't directly measure the quality of life, including health, education, or happiness.

Two alternative measures that could be used to provide a more comprehensive assessment of a country's standard of living are:

• Human Development Index (HDI): This index combines measures of health (life expectancy), education (mean years of schooling), and income (GNI per capita) to provide a more holistic view of well-being.
• Genuine Progress Indicator (GPI): This is an alternative to GDP that attempts to account for the social and environmental costs of economic activity, as well as the benefits of unpaid work. It adjusts GDP to reflect these factors.