HomeworkLib
Question

You should use real per-capita GDP instead of real GDP when: Question 4 options: Real GDP...

You should use real per-capita GDP instead of real GDP when:

Question 4 options:

Real GDP is very different between countries or over time.

you want to measure changes or differences in the price level between countries or over time.

population is very different between countries or over time.

You want to measure changes (or differences) in the population between countries or over time.
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Real GDP gives the market value of all goods and services produced by the country in a year in real terms. Real GDP per capita divides real GDP by the population of the country. This measure is useful when the population varies significantly across nations. For example, two nations A and B may have real GDP of $1000. If the population of A is 10 and that of B is 100, real GDP per capita for A and B becomes $100 and $10 respectively. Thus, option c) is correct.

0 0
Add a comment
Know the answer?
Add Answer to:
You should use real per-capita GDP instead of real GDP when: Question 4 options: Real GDP...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate -...

    Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate - Inflation rate - Population growth rateThis equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this rate. However, the simplified equation both is easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The...

  • Reference equation: Real GDP per capita growth rate Nominal GDP per capita growth rate - Inflation...

    Reference equation: Real GDP per capita growth rate Nominal GDP per capita growth rate - Inflation rate - Population growth rate This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when calculating this rate. However, the simplified equation both is easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The...

  • Many people use per capita GDP – GDP divided by the population in a country –...

    Many people use per capita GDP – GDP divided by the population in a country – to compare the level of development and average living standards in countries. This is measured in dollars to make comparison possible. What is the difference between the nominal per capita GDP and PPP per capita GDP. If PPP per capita GDP is higher than the nominal number, does this imply that a country’s currency is over- or under-valued.

  • Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate-inflation rate-Population...

    Reference equation: Real GDP per capita growth rate = Nominal GDP per capita growth rate-inflation rate-Population growth rate This equation is an approximation of the exact rate of growth of GDP per capita, and so it results in some errors when caloulating this rate. However, the smplified equation is both easy to use and results in small error terms when inflation, nominal GDP growth, and population growth are low, and so it is a useful approximation. The table below lists...

  • 2. If you are told that one country has a real GDP per capita of $20,000...

    2. If you are told that one country has a real GDP per capita of $20,000 and another country has a real GDP per capita of $40,000, explain what you know and don’t know about the differences in production and standard of living in those two countries. Make sure your answer shows that you understand exactly what real GDP per capita is! 3. Describe the phases and key characteristics of business cycles. Then explain where you think we are in...

  • Which of the following suggest that real per capita GDP is not a perfect measure of...

    Which of the following suggest that real per capita GDP is not a perfect measure of economic well-being? a. population varies across counties b. GDP does not measure the value-added created during home production c. GDP does not take into account the income distribution d. GDP underestimates the value of goods and services produced in the economy because of inflation e. GDP inaccurately measures the value of goods and services produced by the government When do we say that the...

  • According to the rule of 70, if a country's real GDP per capita grows at an annual rate of 5% instead of 7%

    According to the rule of 70, if a country's real GDP per capita grows at an annual rate of 5% instead of 7%, it will take how many additional years for that country to double its level of real GDP per capita? (Show Your Work)  

  • 3. If countries are first ranked by level of Real GDP per capita, and then by...

    3. If countries are first ranked by level of Real GDP per capita, and then by the value of the Human Development Index, would you expect the ranking of countries to be similar or different? Explain and provide examples. Refer to table 1 in the Human Development Report website for the most recent data (hdr.undp.org) 4. Explain the lingering effects of colonialism and how it is still playing a role in hindering economic development in the developing world.

  • 1) A good measure of the standard of living is A) real GDP per capita B)...

    1) A good measure of the standard of living is A) real GDP per capita B) the real interest rate C) total nominal GDP D) total real GDP. E) nominal GDP per capita 2) If you invest $10,000 in a bond that earns 8% interest per year, how many years will it take to double your money? A) 1 year and 3 months B) 2 years and 6 months C) 5 years and 6 months D) 8 years E) 8...

  • According to the rule of 70, if a country's real GDP per capita grows at an annual rate of 2% instead of 3%

    According to the rule of 70, if a country's real GDP per capita grows at an annual rate of 2% instead of 3%, it will take for that country to double its level of real GDP per capita. 30 additional years 11.7 additional years 35 fewer years 30 fewer years 35 additional years 23.3 additional years 23.3 fewer years 11.7 fewer years

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT