The per capita GDP can be misleading because actual costs in each country differ.

Question

Quizplus · Accepted Answer

Per capita GDP is calculated by dividing the total GDP of a country by its population. It gives an average income figure for each individual in that country. However, it does not take into account the actual cost of living in that country. For example, a country with a lower per capita GDP may still have lower costs of living, making it more affordable to live there, while a country with a higher per capita GDP may have higher costs of living, making it less affordable to live there. Therefore, per capita GDP can be misleading when comparing living standards across different countries.

The Per Capita GDP Can Be Misleading Because Actual Costs