Question

Suppose there are only two small countries in the world: Ascot, with a population of 30,000 people, and Delwich, with a population of 20,000 people. Ascot’s GDP is equal to $150 million, while Delwich’s GDP is $250 million. Delwich’s GNP has been estimated to be equal to $280 million. Use this information to calculate As-cot’s GNP, the GDP per capita in Ascot, and the GNP per capita in Delwich.

Answer 1

Answer:

$120 million ; $5,000 ; $12,500

Explanation:

We shall use the formula

GNP = GDP + Net income from abroad

Since there are only two nations,  

GNP= GDP of Delwich + GDP of Ascot = 250+150 = $400 million

It is given that the GNP for Delwich = $280 million,  

Thus, the GNP of Ascot = 400 - 280 = $120 million

The per capita GDP in Ascot =$\frac{GDP}{Population}$

=$\frac{150,000,000}{30,000}$ = $5,000

Per capita GNP in Delwich =$\frac{GDP}{Population}$

=$\frac{250,000,000}{20,000}$  = $12,500