Real GDP per capita has been criticized as an indicator of economic development because
A) it does not account for size of population.
B) it does not account for income distribution.
C) it does not account for consumer spending.
D) it does not account for inflation.

Question

Quizplus · Accepted Answer

Real GDP per capita only measures the average income level of a country's population without taking into consideration income distribution. It is possible for a country to have a high GDP per capita but with a large income inequality gap, resulting in a large portion of the population being left in poverty. Therefore, GDP per capita alone can be misleading when assessing overall economic development.

Real GDP Per Capita Has Been Criticized as an Indicator