Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Real GDP / Population
B
Nominal GDP / Inflation Rate
C
Real GDP - Population
D
Population / Real GDP
Understanding the Answer
Let's break down why this is correct
Answer
To calculate real GDP per capita, you first need to find the real GDP of a country, which is the total value of all goods and services produced in that country, adjusted for inflation. Then, you divide this real GDP by the population of the country. This gives you the average economic output per person, which helps to understand how well-off people are in that country. For example, if a country has a real GDP of 1 trillion dollars and a population of 100 million people, the real GDP per capita would be 10,000 dollars. This means that, on average, each person contributes 10,000 dollars to the economy.
Detailed Explanation
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; This suggests subtracting the number of people from total wealth.
Key Concepts
Gross Domestic Product (GDP)
Topic
Calculating Real GDP per Capita
Difficulty
easy level question
Cognitive Level
understand
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