Poor Asian countries may have per-capita GDP's that may be less than $250.Why is this somewhat misleading for comparative purposes?
A)Most rich country GDP is nonmarket activity.
B)A significant amount of poor country GDP is nonmarket activity.
C)Poor countries do not use dollars.
D)Poor countries have few resources.

Question

Quizplus · Accepted Answer

The per-capita GDP of poor countries may be lower due to a significant amount of nonmarket activity, such as subsistence farming and bartering. This means that the actual standard of living and economic activity may be higher than what is reflected in the GDP numbers. Therefore, comparing these countries solely based on GDP can be misleading.

Poor Asian Countries May Have Per-Capita GDP's That May Be