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

The correct answer is Option 4: Per Capita Real Income. While other indicators measure aggregate output, Per Capita Real Income is the most sophisticated metric for economic growth for the following reasons:

• Standard of Living: Unlike GDP or NNP, which reflect the total size of the economy, Per Capita Income accounts for population growth. True economic growth occurs only when the increase in national income exceeds the increase in population, reflecting an improvement in the average citizen's welfare.
• Adjustment for Inflation: The term "Real" signifies that the income is adjusted for inflation (calculated at constant prices). This ensures that growth reflects a genuine increase in the volume of goods and services rather than a mere rise in market prices.
• Elimination of Distortions: GDP (Option 1) can be misleading if the population is growing faster than the economy. NDP (Option 2) and NNP (Option 3) improve upon GDP by accounting for depreciation, but they still fail to represent the individual's economic status as effectively as the per capita measure.

Therefore, Per Capita Real Income serves as the most accurate indicator of both economic expansion and the qualitative improvement in the standard of living.