Social Sciences and History / Unit 14 SSH 1311 short lesson, about 20 seconds
GDP Per Capita and What GDP Leaves Out
Captions available
The idea
To compare countries, convert GDPs to a common currency by the exchange rate, then divide by population: GDP per capita, the better measure. GDP is a rough indicator of living standards, omitting leisure, environment, health, education, non-market work, inequality.
In practice
A large poor country, a small rich one.
Where people slip
The standard of living includes what markets never price.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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