Question

In 2008, Saudi Arabia produced an average of 10,782 barrels of oil per day, while Kuwait averaged 2,742 barrels per day. However, Kuwait's standard of living is markedly HIGHER than Saudi Arabia. Which offers the MOST LIKELY explanation for this?
A) The literacy rate is higher in Saudi Arabia than in Kuwait.
B) Kuwait has a much smaller population than Saudi Arabia.
C) Kuwait has closer ties to the United States than does Saudi Arabia.
D) Kuwait has not been impacted by as much war as has Saudi Arabia.

Answer 1

D) Kuwait has not been impacted by as much war as has Saudi Arabia

Answer 2

Answer:

B) Kuwait has a much smaller population than Saudi Arabia.

Explanation:

While it may seem that more barrels of oil would equal a higher standard of living, that is not necessarily the case. In the example here, Kuwait produces less oil per day than Saudi Arabia but has a higher standard of living. One good explanation for this is that Kuwait has a much smaller population than Saudi Arabia. Saudi Arabia has over 27 million citizens compared to Kuwait's 2.7 million. The GDP per capita in Saudi Arabia approximately $31,000, while in Kuwait it is over $42,000.