GDP per capita is computed as GDP divided by population.

GDP per capita is computed as GDP divided by population.

• A. GDP divided by population
• B. GDP divided by employed people
• C. GDP multiplied by population
• D. The total GDP itself

Answer: (A)

GDP per capita is a per-person measure of economic output, showing the average amount produced per person. It is calculated by dividing the total GDP by the population of the country. This gives a per-person perspective on how large the economy is, useful for cross-country comparisons. Dividing by employed people would yield output per worker, not per person, and wouldn’t reflect the total resources available to everyone. Multiplying GDP by population would blur the per-person perspective and distort scale, while the total GDP itself is the overall size of the economy, not a per-person figure. Therefore, the correct computation is GDP divided by the population.

GDP per capita is a per-person measure of economic output, showing the average amount produced per person. It is calculated by dividing the total GDP by the population of the country. This gives a per-person perspective on how large the economy is, useful for cross-country comparisons. Dividing by employed people would yield output per worker, not per person, and wouldn’t reflect the total resources available to everyone. Multiplying GDP by population would blur the per-person perspective and distort scale, while the total GDP itself is the overall size of the economy, not a per-person figure. Therefore, the correct computation is GDP divided by the population.