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1. India, with the world's largest population of poor people, is creating millionaires at a rapid pace and by 2018 is projected to have 437,000

1. India, with the world's largest population of poor people, is creating millionaires at a rapid pace and by 2018 is projected to have 437,000 millionaires measured in U.S. dollars. That is 1 millionaire for about 1,600 people living on less than $2 a day.

Source: The Times of India, July8, 2015

a. Why might real GDP per person misrepresent the standard of living of the average Indian?

b. Why might $2 a day underestimate the standard of living of the poorest Indians?

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