Which metric best describes the average economic well‑being of individuals within a country?

• A. GDP
• B. Economic system index
• C. GDP per capita
• D. Unemployment rate

Answer: (C)

The main idea is to find a measure that reflects how well the typical person in the country is doing economically. GDP alone sums up all the value produced in an economy, but it doesn’t account for how many people share that total. GDP per capita divides that total by the population, giving an average amount of economic output per person. This makes it a better proxy for the average living standard or well-being of individuals in the country, and it’s commonly used to compare how rich people feel across different countries. The unemployment rate focuses on joblessness, not average income or consumption levels, so it doesn’t describe overall well‑being. The economic system index isn’t a standard metric for average living standards either. So GDP per capita best describes the average economic well-being of individuals.