Per capita GDP will definitely fall if
A)The population falls.
B)The rate of economic growth falls.
C)The rate of economic growth is less than the rate of population growth.
D)There is a decrease in the size of the working population.

Question

Quizplus · Accepted Answer

Per capita GDP is calculated by dividing the total GDP of a country by its population. So, if the rate of population growth is higher than the rate of economic growth, the per capita GDP will fall. Therefore, option C is the best choice. Options A and D might not necessarily lead to a fall in per capita GDP, and option B is not always true as economic growth could remain steady but the per capita GDP could still fall if the population grows faster.

Per Capita GDP Will Definitely Fall If