per capita gdp
TRANSCRIPT
Real per-capita GDP allows us to compare the standard of living in nations of vastly different sizes. It does this by calculating real GDP per-person
China has a population that is four times the size of the United States. With that many people their GDP is going to be very large. But where would you expect to have a higher standard of living – China or the U.S?
Per-Capita GDP measures a nations standard of living. The higher per-capita GDP is the higher the standard of living is.
Per-Capita GDP =Real Gross Domestic Product
Population
Real GDP per person
The market value of all goods and services produced within a nations border within a year
The number of people in the nation
Real just means we have adjusted GDP for inflation which allows us to compare GDP over different time periods
When you see the following per-capita GDP figures try to think about how a person can live on that amount for a year.
BRIC represents Brazil – Russia – India – China. These are the major developing economies of the 21st century.