Which is the correct formula for calculating per capita GDP?
Answer and explanation
Correct answer: (GDP ÷ Population)
Per capita GDP measures the average GDP associated with one person. The governing calculation is total GDP divided by the population: per capita GDP = GDP ÷ population. Thus option C is correct. Option A reverses the ratio, option B multiplies the two quantities, and option D adds quantities with different meanings. Per capita GDP is an average indicator, not a total or a population-to-output ratio.
Frequently asked questions
What is the correct answer to this question?
(GDP ÷ Population)
Why is this the correct answer?
Per capita GDP measures the average GDP associated with one person. The governing calculation is total GDP divided by the population: per capita GDP = GDP ÷ population. Thus option C is correct. Option A reverses the ratio, option B multiplies the two quantities, and option D adds quantities with different meanings. Per capita GDP is an average indicator, not a total or a population-to-output ratio.
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.
