Final answer:
Real GDP per person is a rough yet valuable indicator of economic well-being, capturing some aspects of standard of living but failing to include factors like leisure, environmental quality, and inequality.
Step-by-step explanation:
Real GDP per person, also known as GDP per capita, is a useful, yet imperfect measure of economic well-being. It accounts for the total economic output of a country divided by its population, providing an average value of economic activity per person. While it captures some aspects of the standard of living, such as jobs and incomes, it does not precisely measure broader dimensions of well-being, including leisure, environmental quality, health, and education.
GDP per capita is often correlated with material betterment and is used as an indicator for migration trends, as people tend to move from low GDP per capita countries to those with higher GDP per capita. However, per capita GDP does not factor in income inequality, voluntary work, and other non-monetary factors that contribute to the standard of living. To address environmental concerns, a concept of "green" GDP can be introduced, which would adjust the GDP value by accounting for environmental costs and the sustainable use of resources.
In conclusion, while the real GDP per person is a rough indicator of certain aspects of economic health, it should be considered alongside other measures of living standards for a more comprehensive assessment of a country's well-being.