The United Nations Human Development Report gives the data for 2014 in Table 1. Other information suggests that household production is similar in Canada and the United States and smaller than in China and Russia. The underground economy is larger in Russia and China and a similar proportion of each of these economies. Canadians and Americans enjoy more leisure hours than do the Chinese and Russians. Canada and the United States spend significantly more on the environment than do China and Russia.

1. In which pair (or pairs) of countries is it easiest to compare the standard of living? And in which pair (or pairs) is it most difficult? Explain why.

2. Do the differences in real GDP per person correctly rank the standard of living in these four countries? What additional information would we need to be able to make an accurate assessment of the relative standard of living in these four countries?