Per capita GDP is a near-perfect measure of an economy's standard of living because it takes into account the distribution of the economy's income among the population.

Question

Quizplus · Accepted Answer

Per capita GDP only measures the average income per person in an economy and does not take into account how that income is distributed among the population. Therefore, it cannot accurately reflect the standard of living of all individuals in the economy. Other factors such as income inequality, access to basic goods and services, and quality of life must also be considered.

Per Capita GDP Is a Near-Perfect Measure of an Economy's