Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?
A) 3 percent
B) 7 percent
C) 10 percent
D) 17 percent

Question

Quizplus · Accepted Answer

First, we need to calculate the real GDP per person for both years:

- Real GDP per person in the current year: $620 billion / 2.3 million = $269.57 thousand/person 
- Real GDP per person in the previous year: $502 billion / 2.0 million = $251 thousand/person

Next, we can calculate the growth rate of real GDP per person:

- Growth rate = [(Current year GDP per person - Previous year GDP per person) / Previous year GDP per person] x 100% 
- Growth rate = [($269.57 - $251) / $251] x 100% 
- Growth rate ≈ 7%

Therefore, the approximate growth rate of real GDP per person is 7 percent.

Last Year, Real GDP in Oceania Was $620 Billion and the Population