Question

GDP per capita is a good measure of economic well-being of a country's population. True or False? Provide an explanation about why you believe that it is true or false.

Answer 1

GDP per capita is a good measure of economic well-being of the countries population and that is true because the GDP per capita will tell us how the fruits of growth rate are distributed among the people in the economy. Sometimes it's possible that the larger share of GDP growth is distributed among the few people so by calculating the GDP per capita we can have idea how the GDP growth is distributed among the people. For example, from the GDP growth rate we cannot say how  everybody has benefitted from that growth rate and by calculating the GDP per capita we will be in a better position to tell how the fruits of growth rate are distributed among the people.