Suppose Country A and Country B each have the same real Gross Domestic Product (GDP), equal to $440 billion. Country A has 100 million people and Country B has 175 million people. In this situation, per capita real Gross Domestic Product (GDP) is
A) the same in both countries.
B) higher in Country A.
C) higher in Country B.
D) an irrelevant factor.

Question

Quizplus · Accepted Answer

Per capita real GDP is calculated by dividing the real GDP by the population. In this case, for Country A, the per capita GDP would be $440 billion / 100 million = $4,400. For Country B, the per capita GDP would be $440 billion / 175 million = $2,514. Therefore, per capita real GDP is higher in Country A.

Suppose Country a and Country B Each Have the Same