Question

In 2 to 3 sentences

explain why real GDP per capita does not reflect the actual distribution of wealth.

Answer 1

Real GDP per capita shows the level of output in a country divided equally by the number of people living in a country. But, in reality, output may not be distributed equally among everyone in the country.

Answer 2

GDP per capita doesn´t seek to distribute wealth

Step-by-step explanation:

The GDP per capita represents the economic value of the goods and services generated by a nation that would correspond to each inhabitant if the wealth were distributed equitably. This is only in theory because in reality the money could not be distributed among citizens since the GDP makes an estimate of what the goods and services produced would be worth but doesn´t mean that that money is going to be stored somewhere to be distributed between people.

GDP per capita doesn´t seek to distribute wealth, it is only a macroeconomic indicator that aims to show more clearly if the GDP of a country has increased or decreased in a given time.