Question

In two or three sentences, explain why real GDP per capita does not reflect the actual distribution of wealth?

Answer 1

GDP is total goods of services

ex in dubai a sheikh gets assuming 10,00,000 $ a yer
and a daily wage worker 50,000$

but GDP of dubai is same of usa

now usa gets equally like 1,00,000 $ to every person with slight difference .

so GDp can't denote social equality thus not reflecting distribution of wealth .