Final answer:
Per capita benefit is the amount of resources per individual, often used in the measure of GDP per capita for economic analysis. It is calculated by dividing various inputs, such as human capital and physical capital, by the population size to analyze the economic contribution and development.
Step-by-step explanation:
The term per capita benefit refers to the amount of resources or benefits allocated on a per individual basis. It is not calculated for the total population, a specific group of individuals, nor a species.
In economics, this concept is often used in the context of GDP per capita, which represents the gross domestic product of a country divided by its population.
This measure provides insight into the average economic output or income per person and is a useful tool for comparing economic performance between countries.
To construct a per capita production function, one must divide each input by the number of individuals in the population.
The inputs typically include the average level of human capital per person, the average level of physical capital per person, and the level of technology available per person.
An increase in population can decrease per capita income if not matched by proportional income growth, hence the significance of this measure in understanding the contribution of various factors to economic development.