Practice Questions
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What is the formula to calculate Real GDP per Capita?
To find Real GDP per Capita, you divide the total Real GDP by the number of people. Other options are incorrect because Nominal GDP uses current price...
How does purchasing power parity (PPP) impact the comparison of real GDP per capita between two countries experiencing different rates of economic growth?
PPP helps us compare how much people can actually buy in different countries. Other options are incorrect because This answer suggests we can compare ...
If a country has a Gross Domestic Product (GDP) of $1 trillion and a population of 50 million, what is its Real GDP per capita?
To find Real GDP per capita, divide the total GDP by the population. Other options are incorrect because This answer might come from dividing incorrec...
How does Purchasing Power Parity (PPP) affect the calculation of Real GDP per Capita when comparing economic growth between countries?
PPP helps us compare how much people can buy in different countries. Other options are incorrect because Some might think higher inflation means highe...
If a country's nominal GDP increased by 5% while its population grew by 2%, what would be the effect on its real GDP per capita assuming the inflation rate is negligible?
When the economy grows faster than the population, each person can have more money. Other options are incorrect because This answer suggests that grow...
What is the formula to calculate real GDP per capita?
To find real GDP per capita, you divide the total real GDP by the number of people. Other options are incorrect because This mixes up different ideas;...
What is the formula for calculating Real GDP per Capita?
Real GDP per Capita is found by dividing Real GDP by the total population. Other options are incorrect because Nominal GDP uses current prices, not ad...
What is the formula for calculating Real GDP per Capita using Nominal GDP?
To find Real GDP per Capita, you divide the total Nominal GDP by the number of people. Other options are incorrect because This option suggests multip...
Which of the following statements accurately describe the process of calculating real GDP per capita? Select all that apply.
Other options are incorrect because Some might think that real GDP per capita uses a GDP deflator to adjust for inflation; It's a common mistake to th...
A country, Zeta, recently experienced a significant increase in its nominal GDP due to a surge in oil prices. However, inflation has also risen sharply. If the population of Zeta is 10 million and the GDP deflator indicates a 20% increase, what is the most accurate way to assess the change in living standards in Zeta over the past year using real GDP per capita?
To find real GDP per capita, we need to adjust nominal GDP for inflation. Other options are incorrect because This option suggests only adjusting for ...
If a country experiences a significant increase in nominal GDP while its population remains the same, what would be the likely effect on its real GDP per capita, assuming inflation is also rising?
Real GDP per capita might stay the same if the increase in nominal GDP is equal to the inflation rate. Other options are incorrect because This answer...
To calculate real GDP per capita, one must first adjust the nominal GDP for inflation using a __________ and then divide by the total population.
The GDP deflator helps us adjust the GDP for inflation. Other options are incorrect because An inflation index is a general term; The consumer price i...
Real GDP per capita is to economic productivity as what is to living standards?
Income distribution shows how money is shared among people. Other options are incorrect because Nominal GDP measures total economic output without adj...
What is the correct sequence of steps to calculate Real GDP per Capita?
First, we adjust the nominal GDP for inflation. Other options are incorrect because This option suggests dividing nominal GDP by the population first;...
If a country's nominal GDP increases while its population and inflation rate remain constant, what can we infer about its real GDP per capita?
When nominal GDP goes up and the population stays the same, each person has more money. Other options are incorrect because This option suggests that ...
A country has a nominal GDP of $1 trillion and a GDP deflator of 125. If the population is 250 million, which of the following categories correctly classifies the real GDP per capita for this country?
To find real GDP, we divide the nominal GDP by the GDP deflator. Other options are incorrect because This answer might come from miscalculating real G...
If Country A has a nominal GDP of $1 trillion, a GDP deflator of 1.2, and a population of 50 million, what is its real GDP per capita?
To find real GDP, divide the nominal GDP by the GDP deflator. Other options are incorrect because This answer might come from dividing the nominal GDP...
Master Calculating Real GDP per Capita
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