Question

Suppose Country A and Country B each have a GDP equal to $440 billion and $560 billion respectively. Country A has 100 million people and Country B has 175 million people. In this situation, per capita GDP is:
a. Higher in Country A.
b. Higher in Country B.
c. The same in both countries.
d. Country B has a higher inflation rate.

Answer 1

Answer:

A. Higher in Country A

Explanation:

So to get per capita income

Formula

GDP/Population

Therefore

For Country A

440/100=4.4

Per capita income for country A is 4.4

For Country B

560/175=3.2

Per capita income for country B is 3.2

So the per capita income for country A is higher than Country B