The quantity of goods produced may be the same but the quality of goods may differ, the higher the quality of goods the greater the gain in living standards.

Furthermore, the the types of goods produced would also affect the standard of living, that is production of consumer goods would improve living standards but capital goods would not in the short run, in the long run it would improve living standards as more consumer goods can be produced.

The amount of externalities produced may also differ between the two countries, high income countries may have greater access to better technology would be able to produce without much pollution compared to low-income countries. If there is pollution, the health of the citizens would be affected which decreases living standards.

In addition, the output produced from low-income countries could be due to workers working overtime with poor conditions which decreases living standards.

The size of underground economy also may vary between the two countries. Underground economy can be due to avoid losing benefits or paying taxes or the activity involved is illegal. The greater the underground economy, the more worse of for the living standards of that country as there is more illegal activity.

Hence from the overall points stated, it can be concluded that national income statistics can be used to compare living standards in terms of material aspect but not on the non-material aspect.

There are three ways to measure the national income which are the product method, income method and expenditure method. For the product method, it can be measured by adding up consumers spending, government spending on goods and services, total investment and the difference between exports and imports which as follows C + I + G +(X-M). As for the income method, it will calculate the sum of incomes and costs in a production. Lastly, the product method where it calculates the national income in terms of final goods and services produced in an economy during a particular period of time.

Standard of living refers to the level of wealth, comfort, material goods, and necessities available to an individual or society within an economy or in other word it refers to the quality of life. Standard of living in terms of material is referred to as real GDP per output of goods and services. On contrary, non material aspect includes the environment, working conditions, health, educations and social life.

Low income country can be defined as a country that has low GNI (gross national income) and they have low living standards which includes some characteristics such as high poverty, income inequality, poor education, high dependency ratios and lack in producing their own exports and highly depends on imports. High income country is a country that has high GNI. Moreover, they have relatively high living standards some of the characteristics are low poverty ratios, more equal income distribution, better education and health and they are able to produce their own exports efficiently and depends lesser on imports.

Economic growth refers to an increase in the size of a country's economy over a period of time. This economic growth can help to increase the living standards of an economy such as an employment of resources. This not only increases the output of the high income country but it also help with the employment of the country as there is higher demand for labour meaning it will lead to more income for individuals and families which overall may reduce poverty levels.

Moreover, as the economy is experiencing economic growth, firms will gain greater profits which may lead to more higher wages for their workers hence it will increase the disposable income and resulting a better quality of life as these workers are able to afford better quality of goods and services for example, afford better quality foods and better education. With a better education, the literacy ratios for the high income country increases.

With economic growth, the government can gain higher tax revenue and with this, the government can use this revenue to increase their public spending and invest in better infrastructure and services such as healthcare and therefore improving the standard of living. Also, as high income country is experiencing economic growth they can increase their investment on technology and investment. This can lead to improvements in efficiency, productivity, and the quality of goods and services hence increases the standard of living