The currency in Tinyland is called the Oscar. In 2015, nominal GDP was 600 Oscars. Real GDP was 500 constant Oscars. The population was 10 persons. The best measure of material well-being for 2015 is
A) 5,000 constant Oscars per person.
B) 60 constant Oscars per person.
C) 50 constant Oscars per person.
D) 600 Oscars.
E) 500 constant Oscars.

Question

Quizplus · Accepted Answer

Real GDP per capita is the best measure of material well-being. Real GDP per capita is calculated by dividing real GDP by the population. In this case, 500 constant Oscars divided by 10 persons gives 50 constant Oscars per person. Therefore, choice C is the correct answer.

The Currency in Tinyland Is Called the Oscar