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Two countries have equal total GDP, but the second country's population is half that of the first. Which will have higher per capita GDP?

Answer and explanation

Correct answer: The second country's

Per capita GDP is calculated by dividing total GDP by population. Let the first country have GDP Y and population P; its per capita GDP is Y/P. The second has the same GDP Y but population P/2, so its value is Y/(P/2) = 2Y/P. Therefore option A is correct: the second country has twice the per capita GDP, assuming the figures are measured on the same basis.

Related tags

Per Capita GdpPopulation ComparisonGdpWelfare IndicatorGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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