Country A has a GDP of $200,000 and a population of 1,000.Country B has a GDP of $400,000 and a population of 4,000.Which of the following is true?
A) The value of output is higher in country A.
B) The value of income is higher in country A.
C) The value of GDP per capita is higher in country A.
D) The value of GDP per capita is higher in country B.
E) The average living standard is higher in country B.

Question

Quizplus · Accepted Answer

GDP per capita is calculated by dividing GDP by the population. Country A's GDP per capita is $200,000 / 1,000 = $200, while Country B's GDP per capita is $400,000 / 4,000 = $100. Therefore, the GDP per capita is higher in Country A.

Country a Has a GDP of $200,000 and a Population