How is per capita GDP affected by GDP growth and population growth?
What will be an ideal response?
Per capita GDP is the dollar value of GDP divided by total population. If GDP increases and population is constant, then per capita GDP will grow. If population and GDP grow at the same time, then GDP must grow at a more rapid rate than population for per capita GDP to increase. Even if GDP grows, if population grows at a more rapid rate, then per capita GDP will decline.
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A cartoon in the text says that while the economy has been expanding, the share of income to blacks and poor whites has decreased. This implies that the
A. Tax elasticity of supply is greater. B. Level of income inequality has decreased. C. Gini coefficient is smaller. D. Area between the Lorenz curve and the absolute equality line has increased.
A factual claim about how the world actually works is a ________ statement.
A. positive B. irrational C. normative D. marginal
Which of the following is considered a major player in the financial system?
A. Speculators B. Entrepreneurs C. Intermediaries D. Students
Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the
resulting budget line is: A. 5. B. 1/5. C. 4. D. 20.