Per capita gross domestic product (GDP) may be a deceiving economic measure because the wealth of a country may be concentrated among just a small percentage of the population.

Question

Quizplus · Accepted Answer

Per capita GDP is calculated by dividing the total GDP of a country by its population. It does not take into account income inequality, so a high per capita GDP may not necessarily indicate a high standard of living for the majority of the population. In countries where wealth is concentrated among a small minority, the per capita GDP can be high while the masses are still living in poverty.

Per Capita Gross Domestic Product (GDP) May Be a Deceiving