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