Per capita GDP will definitely fall if
A) The population falls.
B) The rate of economic growth falls.
C) The rate of economic growth is less than the rate of population growth.
D) There is a decrease in the size of the working population

Question

Quizplus · Accepted Answer

Per capita GDP is calculated by dividing the GDP by the population. If the rate of population growth is greater than the rate of economic growth, then the population is increasing faster than the economy is growing. This means that the pie is getting smaller, so to speak, and there are fewer resources per person. Therefore, per capita GDP will fall. The other choices, while potentially affecting the overall GDP, do not necessarily have a direct effect on per capita GDP.

Per Capita GDP Will Definitely Fall If