Question

What is the significance of "per capita GSDP at constant prices"?

• A. It represents the total economic output of a state, adjusted for inflation.
• B. It shows the per capita income adjusted for inflation.
• C. It indicates the average income per person based on current market prices.
• D. It measures the Human Development Index (HDI) of the state.

Answer 1

Answer:

B. It shows the per capita income adjusted for inflation.

• Constant prices mean the value of goods and services is calculated based on the prices of a specific base year. This removes the effect of inflation, providing a more accurate measure of real economic growth.