How is per capita GDP computed?
A) GDP minus all expenses incurred to generate GDP
B) Gross wages earned by all workers in Canada divided by the number of workers
C) GNP divided by Canada's population
D) Total gross domestic product divided by Canada's population
E) GNP minus GDP

Question

Quizplus · Accepted Answer

Per capita GDP is calculated by dividing the total gross domestic product (GDP) by the population of the country. This gives an average measure of the economic output per person in the country. Option A is incorrect as it subtracts expenses from GDP, which is not a correct formula. Option B is incorrect as it considers only the wages of workers and not the entire value of goods and services produced in the country. Option C is incorrect as GNP (Gross National Product) includes the income generated from overseas by the country's citizens and companies, whereas per capita GDP is concerned with the income generated within the country. Option E is incorrect as it subtracts GDP from GNP, which is not a correct formula for calculating per capita GDP.

How Is Per Capita GDP Computed