Question

The most appropriate measure of a country’s economic growth is its:

  1. Gross Domestic Product (GDP)
  2. Net Domestic Product (NDP)
  3. Net National Product (NNP)
  4. Per Capital Product (PCP)

Answer:

Option D: Per Capital Product (PCP)

Detailed Solution:

The correct answer is “Per Capital Product (PCP)”.

The most appropriate measure of a country’s economic growth is its Per Capital Product (PCP) or per capita income. Per capita income is a measure of the amount of money earned per person in a nation or geographic region.