Two countries have equal GDP but the first country has a smaller population. Which country will generally have higher per capita GDP?
Answer and explanation
Correct answer: The first country
Per capita GDP is found by dividing total GDP by population: per capita GDP = GDP ÷ population. When total GDP is equal, the country with fewer people has the smaller denominator and therefore the larger average output per person. Hence option C, the first country, is correct. Equal GDP does not imply equal per capita GDP when population sizes differ.
Frequently asked questions
What is the correct answer to this question?
The first country
Why is this the correct answer?
Per capita GDP is found by dividing total GDP by population: per capita GDP = GDP ÷ population. When total GDP is equal, the country with fewer people has the smaller denominator and therefore the larger average output per person. Hence option C, the first country, is correct. Equal GDP does not imply equal per capita GDP when population sizes differ.
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.
