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Per capita GDP is a better measure of a nation's economic development than total GDP because

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goods and services a nation produces, but the total number does not tell us how productive the country is compared to its population. For instance, in the lesson we saw that Mexico’s GDP was $875 billion in 2010. Mexico’s total GDP was more than twice the size of Norway’s $381 billion GDP. If total GDP was all we looked at, we might get the idea that Mexico is much more productive than Norway. However, Norway had a population of about 4.9 million in 2010, while Mexico’s population was close to 113 million. Mexico’s population was 23 times as big! When we divide Norway’s GDP by its population, we get its GDP per capita of $79,089. We can say that Norway’s economy was productive and developed enough to produce $79,089 per person. Mexico’s GDP per capita was $8,143. Using GDP per capita, we can see that Norway’s economy was actually more productive and developed than Mexico’s economy in 2010.

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User Daniel Abou Chleih
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It gives a better comparison between countries of different population sizes
User Jones J Alapat
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