Case Interview Prep

Answer: A - One of the limitation of GDP indices is that they do not take wealth distribution into account.

Key Takeaway: The disparity in the income between rich and poor members of a society are not accurately reflected in a country’s GDP. In other words, a country that has a healthy GDP may still report large disparities in income between its richest and it poorest members. However, some economists do not consider such a disparity to be a significant indicator of economic health.