Two countries have equal total GDP, but the second country's population is half that of the first. Which will have higher per capita GDP?
Answer and explanation
Correct answer: The second country's
Per capita GDP is calculated by dividing total GDP by population. Let the first country have GDP Y and population P; its per capita GDP is Y/P. The second has the same GDP Y but population P/2, so its value is Y/(P/2) = 2Y/P. Therefore option A is correct: the second country has twice the per capita GDP, assuming the figures are measured on the same basis.
Frequently asked questions
What is the correct answer to this question?
The second country's
Why is this the correct answer?
Per capita GDP is calculated by dividing total GDP by population. Let the first country have GDP Y and population P; its per capita GDP is Y/P. The second has the same GDP Y but population P/2, so its value is Y/(P/2) = 2Y/P. Therefore option A is correct: the second country has twice the per capita GDP, assuming the figures are measured on the same basis.
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.
