Final answer:
Real GDP per capita is the best measure of the average individual's well-being as it adjusts for both population and inflation, giving a more accurate reflection of economic prosperity and potential improvements in living standards.
Step-by-step explanation:
Of the measures discussed in this chapter, Real GDP per capita is the best measure of the average individual's well-being. While Nominal GDP and Real GDP provide us with measures of a country's total economic output, they do not account for population size. Nominal GDP per capita does adjust for population but does not consider inflation and price changes over time.
On the other hand, Real GDP per capita adjusts for both population and inflation, providing a clearer indication of the average individual's economic well-being. It reflects the value of all goods and services produced within a country in a specific year, adjusted for price changes, divided by the population size. It helps in understanding whether the economic growth translates into better living standards for the individuals in the society.
While no single number can capture the complete essence of 'standard of living', GDP per capita serves as a reasonable, rough-and-ready measure of it. Most migrants choose their destination based on higher GDP per capita, which often indicates better opportunities and living conditions.