Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Real GDP / Population
B
Nominal GDP / Population
C
Real GDP x Population
D
Real GDP - Population
Understanding the Answer
Let's break down why this is correct
Answer
Real GDP per capita is a way to measure the economic output of a country divided by its population, showing how much each person would get if the total economy's value were shared equally. To calculate it, you first need to find the Real GDP, which is the total value of all goods and services produced in a country, adjusted for inflation. Then, you divide this Real GDP by the total number of people living in that country. For example, if a country has a Real GDP of $1 trillion and a population of 50 million, you would calculate the Real GDP per capita by dividing $1 trillion by 50 million, resulting in $20,000 per person. This number helps us understand how well-off individuals are in a country compared to others.
Detailed Explanation
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 adjusted for inflation; Multiplying Real GDP by the population does not make sense.
Key Concepts
Real GDP
Topic
Calculating Real GDP per Capita
Difficulty
easy level question
Cognitive Level
understand
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