Per capita GDP is
A)GDP divided by the population.
B)GDP divided by a price index.
C)GDP minus depreciation.
D)population divided by GDP.

Question

Quizplus · Accepted Answer

Per capita GDP is calculated by dividing the total GDP (the value of all goods and services produced within a country in a given time period) by the population of that country. This gives an average measure of the economic output per person. Option B is incorrect as dividing GDP by a price index would give a measure of real GDP, not per capita GDP. Option C is incorrect as depreciation refers to the decline in value of physical capital (e.g. machinery, buildings) over time, and is not directly relevant to per capita GDP. Option D is also incorrect as dividing population by GDP would not yield a meaningful economic measure.

Per Capita GDP Is