Question

Which of the following is a problem with using gross domestic product (GDP) per capita as a measure of "development?"

A. GDP per capita is an estimate that is dependent on the quality of information collected by the government.
B. GDP per capita does not take into account the importance of non-market based activities, such as subsistence practices.
C. GDP per capita as a measure does not get at the degree of disparity between the rich and the poor or what proportion of the population is experiencing poverty.
D. Gross national income (GNI) per capita is a more widely accepted measure than GDP per capita
E. GDP is a value laden term that many consider to be pejorative and patronizing

Answer 1

C. GDP per capita as a measure does not get at the degree of disparity between the rich and the poor or what proportion of the population is experiencing poverty.

Step-by-step explanation:

Per capita GDP is a way of measuring a country's average wealth. This is the total sum of GDP, which consists of the total goods and services produced by the economy, divided by the number of inhabitants of the country. If a country is very unequal, with many people in poverty and other very rich people, GDP per capita does not capture this inequality. This is an economic measurement, but it is not a good parameter for human development, since the calculation of GDP per capita considers all citizens equal, regardless of income inequalities. To measure human development there are other parameters, such as the Human Development Index (HDI).