Question

Per capita GDP is the most practical way to:

a) Analyze the growth rate of the economy over time.
b) Measure how much output is potentially available to the average person.
c) Measure how much output can be consumed on a sustainable basis.
d) Measure how much income households receive.

Answer 1

Answer:

b) Measure how much output is potentially available to the average person.

Explanation:

GDP is the total value of goods & services produced by an economy, during a period of time.

By Expenditure method :

GDP = Private Final Consumption Expenditure + Government Final Consumption Expenditure + Gross Domestic Capital Formation + Net Exports

Per Capita GDP is the average GDP per person in population.

Per Capita GDP = GDP / Number of population.