Question

Economists use real gdp per capita to measure economic growth: even though nominal gnp per capita is a far superior measure of economic growth. because poor nations have a large population and the population of richer nations is declining. because it is the inflation-adjusted value of a country's production of goods and services corrected for the change in a country's population. because it ignores the effect of price changes. 2. the best available measure of the standard of living in a country is: nominal gdp per capita. the unemployment rate. real gdp per capita. the growth rate of productivity. 3. if a country has a population of 1,000, an area of 100 square miles, and a gdp of $5 million, then its gdp per capita is: $5 million. $500. $50,000. $5,000. 4. if technology improves, then it takes more inputs to produce the same output as the last period.
a. True
b. False

Answer 1

1. Economists use real GDP as a measure of living standards as it eliminates the effects of inflation by using the price index of the base period over the current period, which is also called the GDP deflator.

2. Real GDP per capital. Reason explained above.

3. 5million dollars divided by 100, therefore it would be 5000.

4. False. With the advancement of technology, capital becomes more productive and efficient, meaning they produce more output using the same amount of input.