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Per capita GDP is a valuable economic indicator that assesses the average economic output per person in a specific area, usually a country. This measurement is calculated by dividing the total Gross Domestic Product (GDP) by the population. It serves as a proxy for the productivity and economic health of a nation's residents, indicating how much economic activity is being generated on average for each individual.

This reflects the productivity of a country's residents because higher per capita GDP often correlates with higher levels of productivity, job creation, and overall economic performance. When per capita GDP increases, it generally suggests that residents are contributing more to the economy, either through increased efficiency, innovation, or employment in high-value sectors.

The other statements fail to capture the nuances associated with per capita GDP. For example, while it is a significant measure of economic performance, it does not account for income distribution, meaning a high per capita GDP does not ensure equitable wealth distribution among the populace, nor does it inherently indicate living standards without considering other factors such as cost of living and quality of services.