GDP per capita primarily measures what?

GDP per capita primarily measures what?

• A. Health outcomes
• B. Income residents earn abroad
• C. GNP per capita
• D. Domestic output per person

Answer: (D)

GDP per capita is a measure of the average economic output produced inside a country for each person. GDP represents the total value of final goods and services produced within a country’s borders in a given period, so dividing by the population gives domestic output per person. This is why it best matches the idea of domestic output per person. It does not track income residents earn abroad (that would be GNP or GNI per capita) and it isn’t a direct measure of health outcomes. Keep in mind GDP per capita is a rough proxy for living standards, but it ignores income distribution and non-market activities.

GDP per capita is a measure of the average economic output produced inside a country for each person. GDP represents the total value of final goods and services produced within a country’s borders in a given period, so dividing by the population gives domestic output per person. This is why it best matches the idea of domestic output per person. It does not track income residents earn abroad (that would be GNP or GNI per capita) and it isn’t a direct measure of health outcomes. Keep in mind GDP per capita is a rough proxy for living standards, but it ignores income distribution and non-market activities.