A disadvantage of using per capita GDP to measure the standard of living in a country is that it does not accurately reflect the differences in wealth between rich citizens and poor citizens in the same country.

Question

Quizplus · Accepted Answer

Per capita GDP measures the average income per person in a country, but it does not take into account the distribution of wealth within that country. A country with a high per capita GDP may still have significant poverty and income inequality, so using this measure alone may not provide an accurate picture of the standard of living for all citizens.

A Disadvantage of Using Per Capita GDP to Measure the Standard