Question

Use an example to explain why economists measure a country’s economic development by its GDP per capita rather than its total GDP.

Answer 1

An example of why economists measure a country’s economic development by its GDP per capita rather than its total GDP is the comparison between the United States and India. The United States has a much higher total GDP than India, but India has a higher GDP per capita. This is because the population of India is much larger than the population of the United States. Therefore, GDP per capita is a better measure of economic development because it takes into account the size of the population and provides a more accurate picture of the economic well-being of the citizens of a country.