GDP Per Capita is defined as GDP divided by:

• A. GDP divided by the size of the population
• B. GDP divided by the number of employed people
• C. GDP multiplied by population
• D. GDP per capita equals total GDP

Answer: (A)

GDP per capita tells you, on average, how much economic output is available to each person in the country. The way to get that is by taking the total value of goods and services produced (GDP) and dividing it by the size of the population. This per-person figure is what lets you compare living standards across countries or over time, since it accounts for how many people share the same total output.

Why this is the right approach: the term “per capita” literally means “per person,” so dividing GDP by the number of people distributes the economy’s output evenly across everyone. The other ideas don’t match the meaning: dividing by the number of employed people yields output per worker, not per person; multiplying GDP by the population isn’t a per-person measure at all; equating GDP per capita with total GDP ignores the population factor entirely.