GDP per capita
Definition. Gross Domestic Product per capita is a country real GDP divided by its population, giving average real output per person. Adjusted for inflation and population size, it is widely used to compare material living standards across countries, though as an average it can mask income inequality and ignores non material aspects of welfare.
Because it is real and per person, it allows fairer comparison over time and between countries than total nominal GDP. It still omits distribution, leisure, the informal economy and environmental quality.
This term belongs to National Income and GDP in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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