Among two countries with equal total GDP which country will have higher per capita GDP?
Answer and explanation
Correct answer: The country with the smaller population
Per capita GDP is calculated as total GDP divided by total population: per capita GDP = GDP ÷ population. If the two countries have the same numerator, the country with the smaller denominator will have the larger average output per person. Thus A is correct. A larger population lowers the average when GDP is fixed, while C and D ignore the division by population.
Frequently asked questions
What is the correct answer to this question?
The country with the smaller population
Why is this the correct answer?
Per capita GDP is calculated as total GDP divided by total population: per capita GDP = GDP ÷ population. If the two countries have the same numerator, the country with the smaller denominator will have the larger average output per person. Thus A is correct. A larger population lowers the average when GDP is fixed, while C and D ignore the division by population.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
