Assume that the share of population employed in all countries is 50 percent. Based on the information in the table, which country has the smallest 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 smallest 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

To find the real GDP per capita, we first calculate the real GDP of each country by multiplying the average labor productivity by the number of employed individuals (which is 50% of the population), and then divide by the total population. For Country A, the calculation is $(100 \text{ million} \times 0.5) \times 2,000 = 100,000,000$, and when divided by the total population (100 million), the GDP per capita is \$1,000. Repeating this process for each country, we find that Country A has the smallest real GDP per capita.

Assume That the Share of Population Employed in All Countries