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.
Frequently asked questions
What is the correct answer to this question?
Country B
Why is this the correct answer?
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.
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.
