Growth in GDP per capita is attained when
A)There is growth in population.
B)There is growth in output.
C)The growth of output exceeds population growth.
D)Population is held constant.

Question

Quizplus · Accepted Answer

GDP per capita is calculated by dividing the total output of a country by its population. Therefore, in order for GDP per capita to increase, the growth of output must exceed the population growth. A and D are incorrect because population growth, whether it is an increase or a decrease, does not directly contribute to GDP per capita. B is not specific enough as growth in output alone cannot necessarily lead to an increase in GDP per capita if population growth is greater than the growth in output.

Growth in GDP Per Capita Is Attained When