GDP per capita is GDP (Gross National Product) divided by population. Since GDP is measured in a country's currency, in order to compare different countries' GDPs, we need to convert them to a common currency. One way to compare different countries' GDPs is with an exchange rate, the price of one country's currency in terms of another.

Concepts

exchange rate, exchange rates

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Additional Tags

comparing gdp among countries, gdp, gross national product, khan academy, convert them to a common currency, countries have very different numbers of people, to compare standards of living across countries, we need to divide gdp by population, gdp per capita

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Classroom Considerations

• Knovation Readability Score: 3 (1 low difficulty, 5 high difficulty)