Per capita GDP is a country's GDP divided by population.Group of answer choicesTrueFalse

Answer

The statement is True.

Per capita gross domestic product (GDP) is indeed calculated by dividing a country's total GDP by its population. This economic metric is used to assess the average economic output per person in a specific area or country. It gives an indication of the economic well-being of the population, allowing for a comparison between different countries irrespective of their size. When countries with larger populations are compared with smaller ones, per capita GDP provides a clearer picture of individual prosperity and living standards.

Calculating per capita GDP can also help policymakers identify economic disparities and prioritize resources effectively. It's important, however, to interpret this measure cautiously, as it does not account for the distribution of income among the population or other social factors, which can also significantly impact overall well-being.