Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 48

Bolivia has an official GDP per capita of $5,300; the country's underground economy is estimated to be two-thirds the size of its official economy. Cambodia has an official GDP per capita of about $2,650, and its underground economy is about half the size of its official economy. Do these numbers suggest that the typical Bolivian is about twice as well off as the typical Cambodian? If not, is the typical Bolivian more than twice as well off or less than twice as well off as the typical Cambodian? Explain.