Advantages and Limitations of Calculating GDP Per Capita

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[...] In 2006 GDP in M POPULATION IN THOUSANDS GDP PER CAPITA CANADA 1251463 32556 38440 BRAZIL 1067962 188694 5660 INDIA 906268 1109811 817 NICARAGUA 5369 5249 1023 The advantage of calculating GDP per capita is that it allows for a very quick overview of the wealth produced per capita at the national level and the country's productive potential. If we take a closer look at the table above, we notice that Canada has a level of wealth per capita that is in no way comparable to the other three nations. The GDP per capita can sometimes be difficult to compare because its calculation depends exchange rates in effect. [...]

[...] Gross Domestic Product (GDP) Question 1 Calculation of GDP using the expenditure approach: GDP = C + G + I + - According to the expenditure approach In millions of dollars Consumption expenditures 1530 Government expenditures 530 Private and public investments 580 Exports 1040 Imports 930 Gross Domestic Product 2750 GDP = 1530 + 530 + 580 + (1040 - 930) = 2750 Calculation of GDP according to the income approach of resource owners: GDP = Wages + Rent + Business Profit + Taxes on Income According to the income approach of resource owners In millions of dollars Government Expenditures 530 Corporate Profits 380 Depreciation 360 Taxes minus subsidies 280 Net accounting income 190 Interest and investment income 140 GDP = 1400 + 190 + 380 + 140 + 530 + 360 = 3000 The proposed statement is false. We evaluate economic growth through the gross rate of change in production, that is, including depreciation. It is calculated excluding inflation, GDP being adjusted for price increases to obtain a volume growth from one year to another. [...]