Differences in GNI/capita tell us something about the relative wealth of a nation's inhabitants,but we also need to know how the GNI is distributed.

Question

Quizplus · Accepted Answer

Although differences in GNI per capita and economic growth rates do tell us something about the relative wealth of a nation's inhabitants, the information can be somewhat misleading because wealth is usually not evenly spread. Managers must refine these first crude estimates of purchasing power by incorporating data on how national income is actually distributed.

Differences in GNI/capita Tell Us Something About the Relative Wealth