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Country A has real GDP of ₹1200 crore and population of (20) lakh while country B has real GDP of ₹900 crore and population of (10) lakh. Which has higher real output per person?

Answer and explanation

Correct answer: Country B

The governing concept is real GDP per capita, calculated as real GDP divided by population. For country A, ₹1,200 crore divided by 20 lakh people equals ₹6,000 per person. For country B, ₹900 crore divided by 10 lakh people equals ₹9,000 per person. Hence country B has the higher real output per person, so option B is correct; comparing totals alone would incorrectly favour A.

Related tags

Per Capita GdpReal OutputNumerical ComparisonGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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