Answer:
Per capita GDP, or GDP per capita, is a better measure of development than a nation's overall GDP because it takes into account the population size of the country. Here are some reasons why per capita GDP is considered a more accurate measure of development:
Step-by-step explanation:
1. Standard of Living: Per capita GDP provides an estimate of the average income or economic output per person in a country. It gives a better indication of the standard of living and economic well-being of individuals within a nation. By dividing the total GDP by the population, we can understand how the wealth generated is distributed among the people
2. Population Differences: When comparing the overall GDP of two countries, the larger population size of one country can make its GDP appear larger, even if the income per person is relatively low. By using per capita GDP, we can make a fair comparison between countries with different population sizes.
3. Income Distribution: Overall GDP may not accurately reflect the distribution of income within a country. It is possible for a country to have a high GDP but still have a significant portion of the population living in poverty. Per capita GDP provides a more nuanced understanding of how the income is distributed among individuals.
4. Economic Inequality: Per capita GDP helps to highlight economic inequality within a country. It allows policymakers and analysts to identify disparities in wealth distribution and develop targeted policies to address those disparities.
5. Human Development: Development is not just about economic growth; it also encompasses factors like education, healthcare, and quality of life. Per capita GDP helps to measure the economic resources available to invest in human development. By considering the per capita GDP, policymakers can assess a country's capacity to provide essential services and improve the well-being of its citizens.
per capita GDP offers a more comprehensive and accurate measure of a country's development by considering the average income and economic well-being of its people. It helps to account for population differences, income distribution, economic inequality, and the capacity for human development.