If a country's real GDP index is one hundred twenty and its population index is one hundred ten what is the approximate real output per capita index relative to the base year?
Answer and explanation
Correct answer: About one hundred nine
The real output per capita index is calculated by adjusting the real GDP index for the population index: (120 ÷ 110) × 100 = 109.09, approximately 109. Thus option A is correct. Option C ignores population growth, option B is a rough but less accurate value, and option D incorrectly multiplies the two indices. The calculation shows that total real output grew faster than population.
Frequently asked questions
What is the correct answer to this question?
About one hundred nine
Why is this the correct answer?
The real output per capita index is calculated by adjusting the real GDP index for the population index: (120 ÷ 110) × 100 = 109.09, approximately 109. Thus option A is correct. Option C ignores population growth, option B is a rough but less accurate value, and option D incorrectly multiplies the two indices. The calculation shows that total real output grew faster than 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.
