Why is GDP per capita an important indicator of development? A It measures the overall economic productivity of a country's industries. B It evaluates the financial impact of imports and exports in a country. C It provides a measure of economic equality within a population. D. It reflects the average income of citizens and offers insight into living standards.

## Step 1<br />Gross Domestic Product (GDP) per capita is a measure that divides the GDP of a country by its population. This gives us an average economic output per person.<br /><br />## Step 2<br />Option A suggests that GDP per capita measures the overall economic productivity of a country's industries. While GDP per capita does reflect the average economic output per person, it does not specifically measure the productivity of industries.<br /><br />## Step 3<br />Option B states that GDP per capita evaluates the financial impact of imports and exports in a country. This is not accurate. The balance of trade, which is the difference between a country's exports and imports, is a separate economic indicator and is not directly measured by GDP per capita.<br /><br />## Step 4<br />Option C claims that GDP per capita provides a measure of economic equality within a population. This is not correct. GDP per capita is an average and does not provide information about the distribution of income within a country. Other measures, such as the Gini coefficient, are used to assess income inequality.<br /><br />## Step 5<br />Option D is correct. GDP per capita reflects the average income of citizens and offers insight into living standards. A higher GDP per capita generally indicates a higher standard of living, as it suggests that, on average, citizens have higher incomes. However, it's important to note that GDP per capita does not account for factors like income distribution, cost of living, and inflation, which can also influence living standards.