[UPSC Prelims PYQ 2001] Most appropriate measure of a country’s economic growth

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

1. Gross Domestic Product
2. Net Domestic Product
3. Net National Product
4. Per Capita Real Income

Explanation

• Per Capita Real Income is the most appropriate measure of economic growth because it reflects the average income of individuals after adjusting for inflation.
• While GDP, NDP, and NNP indicate the overall size of the economy, they do not account for population growth.
• An increase in Per Capita Real Income signifies an improvement in the standard of living and the economic well-being of the people, making it a better indicator of economic growth.

Answer: (d) Per Capita Real Income