Can anyone define "GDP per capita" in basic detail?

Question

thank you

Answer 1

GDP (Gross Domestic Product) is one of several measures of the size of its economy. The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time. Until the 1980s the term GNP or gross national product was used in the United States(USA). The two terms GDP and GNP are almost identical - and yet entirely different; GDP being concerned with the region in which income is generated and GNP (or GNI - Gross National Income) being a measure of the accrual of income to a region. The most common approach to measuring and understanding GDP is the expenditure method:

GDP = consumption + investment + (government spending) + (exports − imports)

"Gross" means depreciation of capital stock is not included. With depreciation, with net investment instead of gross investment, it is the net domestic product. Consumption and investment in this equation are the expenditure on final goods and services. The exports minus imports part of the equation (often called cumulative exports) then adjusts this by subtracting the part of this expenditure not produced domestically (the imports), and adding back in domestic production not consumed at home (the exports).

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector (or government) spending. Two advantages of dividing total consumption this way in theoretical macroeconomics are:

* Private consumption is a central concern of welfare economics. The private investment and trade portions of the economy are ultimately directed (in mainstream economic models) to increases in long-term private consumption.
* If separated from endogenous private consumption, government consumption can be treated as exogenous, so that different government spending levels can be considered within a meaningful macroeconomic framework.

Answer 2

GDP stands for Gross Domestic Product. This is a way to measure the size of a country's economy. Simply put, it is the value of all goods and services produced in a country.

When it is expressed per capita, this means that it is divided by the population to account for countries with greatly varying sizes. So you can compare a country with 300 million people with a country with only 1 million people.

If you would like to learn more about the GDP per capita, I would recommend the following website:

http://en.wikipedia.org/wiki/Gross_domestic_product

Answer 3

Gross Domestic Product(GDP) per Capita simply means the gross domestic product divided by the Population of the target country.