Question

In which of the following scenarios would per capita income be the most misleading indicator?

• A. A country where the majority of the population is middle class.
• B. A country with a very small population.
• C. A country with a few billionaires and a large number of very poor people.
• D. A country with a high level of economic stability.

Answer 1

Answer:

C. A country with a few billionaires and a large number of very poor people.

• In a country with extreme wealth concentration, a few billionaires can skew the average, making per capita income appear high even if the vast majority of the population is poor.