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Per capita GDP shows the average of what?

Answer and explanation

Correct answer: Domestic output per person

Per capita GDP is calculated using the formula: total GDP divided by the total population. It therefore represents average domestic output per person, not the exact income received by every individual. Option A is correct. Tax per family, pollution per person, and students per school require different data and are not defined by the per capita GDP formula. The measure is an average and can hide inequality.

Related tags

Per Capita GdpAverage OutputPopulationGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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