What is the main use of per capita GDP?
Answer and explanation
Correct answer: It indicates average economic output per person
Per capita GDP is calculated by dividing total GDP by the population: per capita GDP = GDP ÷ population. It provides an average measure of output or income available per person and is useful for broad comparisons between economies, especially when population sizes differ. Option B is correct. However, it is only an average; it cannot show inequality, exact pollution, or all unpaid and non-market services.
Frequently asked questions
What is the correct answer to this question?
It indicates average economic 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 provides an average measure of output or income available per person and is useful for broad comparisons between economies, especially when population sizes differ. Option B is correct. However, it is only an average; it cannot show inequality, exact pollution, or all unpaid and non-market services.
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.
