Which of the following is a key component in determining the economic growth of a country?

• A. The per capita national output
• B. The total population
• C. The capital stock
• D. The number of political reforms

Answer: (A)

Economic growth is best understood through changes in how much output is produced per person. Per capita national output shows exactly that: it combines total production with the number of people, so it reflects whether growth is translating into more goods and services for the average person. If real GDP rises faster than the population, per-capita output climbs, signaling genuine improvement in living standards. Capital stock matters because more or better capital can raise productivity and future output, but it’s a driver of growth rather than the direct measure of growth per person. Political reforms can shape the environment for growth, yet they aren’t the direct indicator of growth itself.