If output growth exceeds population growth for a country,
A) Average living standards will increase.
B) GDP must have fallen at a very rapid rate.
C) Per capita GDP will decrease.

Question

Quizplus · Accepted Answer

When output growth exceeds population growth, the country's GDP per capita increases, which usually means that average living standards will also increase. This is because there is more production and income per person. Option B is incorrect because if output growth exceeded population growth, it would indicate an increase in GDP, not a decrease. Option C is also incorrect because if output growth is greater than population growth, then per capita GDP will increase, not decrease.

If Output Growth Exceeds Population Growth for a Country