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.
Frequently asked questions
What is the correct answer to this question?
Domestic output per person
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
