Nation A's real GDP was $520 billion in 2015 and $550 billion in 2016. Its population was 150 million in 2015 and 155 million in 2016. On the other hand, Nation B's real GDP was $200 billion in 2015 and $210 billion in 2016; and its population was 53 million in 2015 and 55 million in 2016. Which of the following statements is true?

a. Nation A's GDP per capita increased from 2015 to 2016, while Nation B's decreased.

b. Nation A's and Nation B's GDP per capita both increased from 2015 to 2016.

c. Nation B's GDP per capita increased from 2015 to 2016, while Nation A's decreased.

d. Nation A's and Nation B's GDP per capita both decreased from 2015 to 2016.

Question

Business

Jaylen Mccarty

5 March, 09:06

Nation A's real GDP was $520 billion in 2015 and $550 billion in 2016. Its population was 150 million in 2015 and 155 million in 2016. On the other hand, Nation B's real GDP was $200 billion in 2015 and $210 billion in 2016; and its population was 53 million in 2015 and 55 million in 2016. Which of the following statements is true?

a. Nation A's GDP per capita increased from 2015 to 2016, while Nation B's decreased.

b. Nation A's and Nation B's GDP per capita both increased from 2015 to 2016.

c. Nation B's GDP per capita increased from 2015 to 2016, while Nation A's decreased.

d. Nation A's and Nation B's GDP per capita both decreased from 2015 to 2016.

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Answers (1)

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Saniya Howard · Answer 1

Nation A's and Nation B's GDP per capital both increased from 2015 to 2016 (b).

Explanation:

The formula for per capital income = total income/total population. In the year 2015 Nation A's per capital income is 520/150 = 3.46 and in the year 2016 Nation A's per capital income is 550/155=3.54. In the year 2015 Nation B's per capital income is 200/53 = 3.77 and in the year 2016 B's per capital income 210/55=3.81.

In both the cases the per capital income has increased from the year 2015 and 2016 for both the nation.