and why is it important when compairing two countries’ Gross Domestic Product?
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On their own, GDP per capita might make it look like there is a HUGE difference in income/quality of life between certain countries. Say one country has GDP per capita of $40k and another has GDP per capita of $20k. So one country looks like it’s twice as wealthy as the other. But in terms of quality of life, if goods and services are cheaper in the second country the quality of life might not be as different as you might first assume. Maybe rents are half, maybe a bag of rice is half, maybe cars cost the same but there is cheap transit, etc. so that overall quality of life is only 10% lower in the country with half the GDP of the other.
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