Question

Although China’s total economic output, measured by Gross Domestic Product (GDP), is third largest in the world, it is considered a developing nation. What is most likely the most important factor for this designation?A.China’s government spends money on things that do not benefit human development.B.China has a large population, so its GDP per person is only modest.C.China has a strong economy but weak literacy and school attendance rates.D.China’s high rates of disease offset the country's economic gains. Please select the best answer from the choices provided.

Answer 1

Answer: B.China has a large population, so its GDP per person is only modest

Explanation:

GROSS DOMESTIC PRODUCT PER PERSON also known as GROSS DOMESTIC PRODUCT PER CAPITA is a measure of a country's prosperity and designation i.e, whether they are a developed or developing nation.

It is calculated by dividing a country's GDP by the amount of people in the country.

Countries with large populations generally have low GDP per capitas because the denominator / divisor is so high. Countries like Nigeria, India and China fall into this category and are therefore known as DEVELOPING countries.

Conversely, countries with smaller populations like Luxembourg and Lichtenstein have really high GDP per capitas and as such are considered to be DEVELOPED countries.