|Question||India, with the world’s largest population of poor people created millionaires at the fastest pace in the world in 2007. India added another 23,000 more millionaires in 2007 to its 2006 tally of 100,000 millionaires measured in dollars. That is 1 millionaire for about 7,000 people living on less than $2 a day.
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?