If a country's population growth rate exceeds the growth rate in its GDP, which of the following is true?
A) Per capita GDP is rising.
B) Per capita GDP is not changing.
C) Per capita GDP is falling.
D) None of the above.

Question

Quizplus · Accepted Answer

Per capita GDP is calculated by dividing the total GDP of a country by its population. If the population growth rate is higher than the growth rate in GDP, then the increase in GDP is not enough to keep up with the increase in population, which means that the average income per person (per capita) is decreasing. This is an indication of economic decline or stagnation, which could have negative impacts on the country's overall development.

If a Country's Population Growth Rate Exceeds the Growth Rate