India to be Home to437,000 Millionaires by 2018

India, with theworld's largest population of poorpeople, is creating millionaires at a rapid pace and by 2018 is projected to have437,000 millionaires measured in U.S. dollars. That is 1 millionaire for about1,600 people living on less than$2 a day.

Source: The Times of India, July18, 2015

Why might real GDP per person misrepresent the standard of living of the averageIndian?

Why might$2 a day underestimate the standard of living of the poorestIndians?

The value of real GDP per person might misrepresent the averageIndian's standard of living because______.

A.

real GDP does not include home production andIndia's real GDP is calculated with the low prices that prevail in India

B.

real GDP includes the goods produced and sold in the black market and India has a relatively small black market

C.

India's population is very large

D.

real GDP includes home production and the black market and both of these are difficult to measure

The standard of living of those living on$2 a day might be underestimated because______.

A.

the currencies in India and the United States cannot be compared

B.

many international firms outsource to India and they pay wages much higher than$2 a day

C.

many of the transactions of the poorest people in India do not occur in markets

D.

many of the Indian people are well educated