Assume that the share of population employed in all countries is 50 percent. Based on the information in the table, which country has the highest real GDP per capita?
$\begin{array}{|c|r|r}
\hline \text { Country } & \text { Population (millions) } & \text { Average Labor Productivity (\$) } \
\hline \mathrm{A} & 100 & 2,000 \
\hline \mathrm{B} & 150 & 10,000\
\hline \mathrm{C} & 75 & 25,000 \
\hline \mathrm{D} & 250 & 50,000 \
\hline \mathrm{E} & 95 & 60,000 \
\hline
\end{array}$

Question

Assume that the share of population employed in all countries is 50 percent. Based on the information in the table, which country has the highest real GDP per capita?  
$\begin{array}{|c|r|r}
\hline \text { Country } & \text { Population (millions) } & \text { Average Labor Productivity (\$) } \
\hline \mathrm{A} & 100 & 2,000 \
\hline \mathrm{B} & 150 & 10,000\
\hline \mathrm{C} & 75 & 25,000 \
\hline \mathrm{D} & 250 & 50,000 \
\hline \mathrm{E} & 95 & 60,000 \
\hline
\end{array}$

Quizplus · Accepted Answer

Country E has the highest real GDP per capita. This is because real GDP per capita is calculated as (Average Labor Productivity * Share of Population Employed) / Population. Given that the share of population employed is 50% for all countries, we can calculate the real GDP per capita for each country. For Country E, it would be (60,000 * 0.5) / 95 million, which gives the highest value per capita when compared to the other countries.

Assume That the Share of Population Employed in All Countries