On average, which of the following groups consumes more goods and services per person?
Correct Answer
After accounting for all income, charity, and non-cash welfare benefits like subsidized housing and Food Stamps, the poorest 20% of Americans consume more goods and services than the national averages for all people in most affluent countries. This includes the majority of countries in the prestigious Organization for Economic Cooperation and Development, such as Denmark, Japan, Portugal, and New Zealand. Consumption of goods and services is the World Bank's "preferred" indicator of material well-being due to "practical reasons of reliability and because consumption is thought to better capture long-run welfare levels than current income."
DocumentationMaterial Well-Being