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GDP per Capita

Gross Domestic Product (GDP) per capita is a measure of a country’s economic output per person. It is calculated by dividing the total GDP by the population, providing a general indication of a country’s standard of living and economic health. Higher GDP per capita suggests a more prosperous economy with higher living standards, while lower values may indicate economic challenges. It is widely used in economic analysis, comparisons between countries, and policy assessments.

Example

Country A has a GDP of $1 trillion and a population of 50 million, resulting in a GDP per capita of $20,000. This figure helps compare its economic well-being to other nations.

Key points

• Measures economic output per person.

• Indicates a country’s standard of living and economic prosperity.

• Used for comparisons between countries and economic assessments.

Quick Answers to Curious Questions

It provides an average measure of economic output per person, indicating living standards and overall prosperity, but does not account for income distribution.

Factors include economic growth, productivity, population size, and the overall business environment, affecting the wealth generated per person.

It allows for comparisons of living standards and economic performance between countries, helping policymakers identify areas for improvement.