In 2009, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2010 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by
A)2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question

Quizplus · Accepted Answer

Real GDP per person can be calculated by dividing real GDP by the population. 
In 2009, real GDP per person in Mainland was 120,000/6,000 = 20. 
In 2010, real GDP per person in Mainland was 128,960/6,200 ≈ 20.78. 
Therefore, the growth in real GDP per person over the year was (20.78-20)/20 = 0.039, or 3.9%. Rounded to the nearest percent, this is a growth of 4%, which is high compared to average U.S. growth over the last one-hundred years. Choice C is the correct answer.

In 2009, the Imaginary Nation of Mainland Had a Population