What does per capita GDP indicate?
Answer and explanation
Correct answer: Average output per person
Per capita GDP is calculated by dividing total GDP by the population: per capita GDP = GDP ÷ population. It therefore represents average output or income per person in an accounting sense, not the actual income received by each individual. Option C is correct. It also says nothing by itself about inequality, so option B is not valid, while A and D misstate the measure.
Frequently asked questions
What is the correct answer to this question?
Average output per person
Why is this the correct answer?
Per capita GDP is calculated by dividing total GDP by the population: per capita GDP = GDP ÷ population. It therefore represents average output or income per person in an accounting sense, not the actual income received by each individual. Option C is correct. It also says nothing by itself about inequality, so option B is not valid, while A and D misstate the measure.
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.
