If Country A’s GDP is $500 billion and its population is 50 million, and Country B’s GDP is $1 trillion with a population of 200 million, which has the higher GDP per capita?

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BlackTom AI · Accepted Answer

Let's lay out the given data clearly and then compare.
Question restated: If Country A’s GDP is $500 billion with a population of 50 million, and Country B’s GDP is $1 trillion with a population of 200 million, which has the higher GDP per capita?
Option 1: Country A
This option claims Country A has the higher GDP per capita. To verify, compute GDP per capita for each country: Country A = 500 billion / 50 million = (500,000,000,000) / (50,000,000) = 10,000. So GDP per person is $10,000 for Country A.
Option 2: Country B
Compute Country B’s GDP per capita: 1 trillion / 200 million = (1,000,000,000,000) / (200,000,000) = 5,000. That yields $5,000 per person for Country B, which is lower than Country A’s $10,000.
Option 3: Cannot be determined
Since we have all the necessary numbers (GDP and population for both countries), the GDP per capita can be determined. Therefore this option is incorrect.
Option 4: They are the same
Given the calculated per-capita values are $10,000 and $5,000 respectively, the figures are not equal, so this option is incorrect.
Summary of reasoning across options: The key is calculating GDP per capita by dividing GDP by population for each country and comparing the results. Country A yields $10,000 per person, while Country B yields $5,000 per person, so Country A has the higher GDP per capita.
Note on potential pitfalls: It’s easy to confuse units (billions/trillions) if you don’t align numerator and denominator carefully. Verifying each calculation step helps prevent errors and ensures a direct comparison between the two per-capita figures.

ECON 2002.01 AU2025 (21333) Midterm Exam 2- Requires Respondus LockDown Browser

If Country A’s GDP is $500 billion and its population is 50 million, and Country B’s GDP is $1 trillion with a population of 200 million, which has the higher GDP per capita?

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