is Economy of a country measured by per captia income?

Answer 1

There are many measures which are used for measuring strength of economy of a country like Gross Domestic Product (GDP), Gross National Product (GNP), Per Capita Income etc. However all these measures in itself do not give correct picture of economy like Brunei example.

All these have to be analyzed and then we can arrive at a tentative strength.

Answer 2

Per captia income is not the best measure of a economy because per capita income only tells you how much income are earned, on average, by each citizen. It does not tell you about the aggregate of the economy as a whole.

A high per captia income does not necessarily mean the country have a big economy. A high per captia income only means the citizens in the country, on average, earns a higher income than other countries. It does not necessitates it has a bigger economy since per captial income is total income divided by total population. A high per captia income can be caused by a small population.

A better measure of economy is the GDP or GNP. This would provide the total dollar output the economy provides each year. This way, we have a basis to compare the sizes of each economies.

Answer 3

Sometimes, but the most common measure is GDP, Gross Domestic Product, the total output of goods & services by the country.

Take Brunei, which has one of the highest per-capita incomes in the world, but you hardly think of them as an economic powerhouse.

Answer 4

If i am not mistaken it is the number of phone available in one country.