What happens to per capita GDP if the same GDP is shared among fewer people?
Answer and explanation
Correct answer: It will rise
Per capita GDP equals total GDP divided by population. If total GDP remains constant while the population becomes smaller, the denominator falls, so the quotient rises; for example, 1,000 units divided among 100 people gives 10 per person, while the same 1,000 among 50 gives 20. Option A is correct. This is an arithmetic average and does not by itself prove that every person becomes richer.
Frequently asked questions
What is the correct answer to this question?
It will rise
Why is this the correct answer?
Per capita GDP equals total GDP divided by population. If total GDP remains constant while the population becomes smaller, the denominator falls, so the quotient rises; for example, 1,000 units divided among 100 people gives 10 per person, while the same 1,000 among 50 gives 20. Option A is correct. This is an arithmetic average and does not by itself prove that every person becomes richer.
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.
