output per capita - more accurate measurement of standard of living than total  

• adjusts for country's different sizes
• in comparing other countries, cannot simply just use exchange rates to calculate relative GDPs
• purchasing power parity (PPP) - adjusted real GDP numbers using set of common prices
  • different products valued differently in different countries >> better to use the same price for each product

general growth trends  

• standard of living has increased a lot since 1950
  • force of compounding - effects of growth increase over time
• growth rates of output per capita decreasing since 1970s
• output per capita converging over time
  • countries behind in output have grown faster >> catching up
• from end of Roman empire to 1500s, almost no growth of output per capita in Europe
  • majority of people employed in agriculture
• slow growth from 1500 to 1700s, remained small even during Industrial Revolution
• high growth only a recent phenomenon
  • leapfrogging - leader in output per capita changes (no single dominant leader)
  • 4 tigers - Singapore, Taiwan, Hong Kong, South Korea >> gaining on Japan
  • convergence not a trend among African countries