Two nations, Equatoria and Laboria, report the exact same GDP per capita. However, international surveys consistently rank Equatoria's citizens as having a much higher level of well-being. In Laboria, the average workweek is 60 hours, industrial pollution is a major concern, and a small fraction of the population holds a vast majority of the nation's wealth. Which of the following best explains why GDP per capita fails to reflect the difference in well-being between the two nations?
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Utility of GDP Per Capita for Economic Comparisons
Evaluating Well-being Beyond Average Income
Critique of GDP Per Capita as a Well-being Indicator
A country that successfully doubles its economic output per person over a decade, leading to a doubling of its average income figure, has unequivocally improved the overall well-being of its average citizen.