Definition of per capita
- the highest income per capita of any state in the union
First Known Use: 1682See Words from the same year
Per capita is a measure of a quantity per person.
Per Capita GDP = Gross Domestic Product/Population
So, let's assume that Country XYZ has $100 trillion in gross domestic product and 250 million people. According to the formula, Country XYZ's net debt per capita is:
Per Capita GDP = $100,000,000,000,000/250,000,000 = $400,000
Per capita measures help analysts and investors get a better feel for whether a company, country, or other entity is productive, efficient, or profitable. For instance, the per capita measure of GDP indicates whether the country’s workforce is generally becoming more or less productive – that is, whether the country’s workforce is efficiently producing goods and services that consumers want.
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