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If countries A and B have the same total GDP but A has a smaller population and B a larger population, which has higher per capita GDP?

Answer and explanation

Correct answer: Country A

Per capita GDP is calculated as total GDP divided by population: per capita GDP = GDP ÷ population. Since both countries have the same numerator, the country with the smaller denominator has the larger ratio. Therefore, country A has higher per capita GDP. B reverses the denominator logic, C ignores the population difference, and D is incorrect because the relevant information is sufficient.

Related tags

Total GdpPopulationPer Capita GdpGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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