In a country with income concentrated in the hands of a small group of people, median household income would be a better measure of the standard of living of a typical citizen than GDP per capita would be.

Question

Quizplus · Accepted Answer

GDP per capita is the total economic output of a country divided by its population. However, in a country with income inequality, this can be skewed by the very high incomes earned by a small group of people. Median household income, on the other hand, represents the income earned by the middle household in a country, and can be a better indicator of the likely standard of living of a typical citizen.

In a Country with Income Concentrated in the Hands of a Small