Question

Use the table to answer the questions. Round your answers to the nearest cent. Country Gross domestic product (GDP) Population $2.5 trillion $6 trillion 100 million Country A Country B 960 million What is the GDP per capita for Country A? What is the GDP per capita for Country B? Which country has the largest average GDP per capita? O Country B O Country A

Answer 1

GDP

GDP is the market value of all final goods and services produced with the domestic territory of a country during an accounting year. Here final goods means goods are ready for final consumption.

GDP percapita is the GDP per head. In other words GDP percapita stands for GDP per person. It is the measure of a country’s economic prosperity. The GDP percapita can be obtained by dividing country’s Gross Domestic Product by its total population. The GDP percapita = GDP/Population.

The GDP percapita of country A is its GDP/Population i.e $2.5 trillion/100 million

= $25,000

GDP percapita of country B is its GDP/Population i.e $6trillion/960million

=$6250

Country A has the largest average GDP. It is $25,000 compared to the GDP percapita of country B. ( country B’s GDP percapita is only $6250)