00:01
Explain why gdp per capita comparison among nations are not a perfect measure of differences in economic well -being.
00:07
Well, the gross -sponsic product, gdp, per capita is a commonly used measure of countries ' economic well -being, but it's not a perfect measure and has some limitations.
00:19
Here are a few reasons why gdp comparisons among nations are not perfect.
00:24
One, we could say that the gdp per capita does not take into account for instance.
00:40
Income inequality.
00:49
Gdp per capita is an average measure and it doesn't take into account the distribution of the income within a country.
00:55
A high gdp per capita does not necessarily mean that the majority of the population is well off.
01:01
A country with a high gdp per capita and a high level of income inequality may have a large number of people living in poverty.
01:10
Gdp per capita does not account for non -monetary forms of well -being.
01:32
It measures the value of goods and services produced in a country, but it does not take into account other forms of well -being like health, education, and environmental quality...