In which situation can per capita GDP rise?
Answer and explanation
Correct answer: When GDP grows faster than population
Per capita GDP is calculated as total GDP divided by population: per capita GDP = GDP ÷ population. It rises when total GDP increases faster than the population, because output available on average for each person becomes greater. If population rises while GDP is constant, or GDP falls with a stable population, the ratio declines. Therefore, option A is correct.
Frequently asked questions
What is the correct answer to this question?
When GDP grows faster than population
Why is this the correct answer?
Per capita GDP is calculated as total GDP divided by population: per capita GDP = GDP ÷ population. It rises when total GDP increases faster than the population, because output available on average for each person becomes greater. If population rises while GDP is constant, or GDP falls with a stable population, the ratio declines. Therefore, option A is correct.
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.
