What is the difference between GDP and GDP per capita?

What is the difference between GDP and GDP per capita?

GDP, or Gross Domestic Product, measures the total economic output of a country, while GDP per capita divides that output by the population, giving a per-person average.

Why is GDP per capita considered a better indicator of living standards?

GDP per capita provides a more accurate reflection of individual prosperity and living standards, as it accounts for population size.

Can you give an example of a country with high GDP but low GDP per capita?

Yes, countries like China have a high GDP due to their large economy, but their GDP per capita is lower because of their vast population.

How do GDP and GDP per capita affect economic policy?

Policymakers often use GDP to gauge overall economic health, while GDP per capita helps target social programs and improve living standards.