Per capita GDP will definitely fall when
A)Population increases.
B)GDP decreases.
C)The labor force decreases.
D)The population growth rate exceeds the economic growth rate.

Question

Quizplus · Accepted Answer

Per capita GDP will fall when the population growth rate exceeds the economic growth rate, meaning there are more people and less economic output per person. Option A is incorrect because population growth by itself does not necessarily affect per capita GDP. Option B is also incorrect because GDP and per capita GDP are two different measures. Option C is incorrect because labor force changes do not directly impact per capita GDP either.

Per Capita GDP Will Definitely Fall When