The total size of the economy is a better indicator of the strength of the local economy and the market opportunity for a new consumer product than the income per person.

Question

Quizplus · Accepted Answer

The income per person (per capita income) is often a better indicator of the market opportunity for a new consumer product because it reflects the average income available to individuals for spending, which directly influences their purchasing power. The total size of the economy can be misleading if the wealth is unevenly distributed, as a large economy could still have a significant portion of the population with low purchasing power.

The Total Size of the Economy Is a Better Indicator