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Two countries have equal GDP but the first country has a smaller population. Which country will generally have higher per capita GDP?

Answer and explanation

Correct answer: The first country

Per capita GDP is found by dividing total GDP by population: per capita GDP = GDP ÷ population. When total GDP is equal, the country with fewer people has the smaller denominator and therefore the larger average output per person. Hence option C, the first country, is correct. Equal GDP does not imply equal per capita GDP when population sizes differ.

Related tags

Country ComparisonPer Capita GdpPopulationGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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