Question

Need help ASAP !

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

a. it shows how wealthy each person in the country is.
b. it gives a better comparison between countries of different population sizes.
c. it shows how the unemployment rate affects GDP.
d. it uses the exchange rate of the country involved.

Answer 1

a. it shows how wealthy each person in the country is.

Step-by-step explanation:

GDP per capita shows the average contribution per individual to the country's GDP. It is obtained by dividing the country's GDP by its population. GDP per capita estimates the level of economic activity per citizen. A higher GDP per capita suggests that each individual produced a high value of goods and services in that period.

GDP per capita is a measure of the prosperity of a country. A country with a high GDP per capita has a high economic growth relative to its population. When the output of the country is shared among its population, each individual gets a big proposition. Therefore, a high GDP per capita indicates that citizens are more wealthy.