Question

Which of the following captures the essence of per capita GDP?

• A. The total value of all goods and services produced by a country in a given year.
• B. The total value of all goods and services produced by a country in a given year divided by the labour force of the country.
• C. The total value of all goods produced by a country in a given year divided by the number of goods sold in the country.
• D. The total value of all goods and services produced by a country in a given year divided by the population of the country.

Answer 1

The correct option is D The total value of all goods and services produced by a country in a given year divided by the population of the country.

Per capita GDP is defined as the total value of all goods and services produced by a country in a given year divided by its population. It was used as an income indicator by the UNDP for measuring human development.