GDP GDP Per Capita and Living Standards 1

Question 1

How is GDP per capita calculated?

Accepted Answer

Total GDP divided by the population

Answer

GDP per capita is calculated by dividing a country's total GDP by its total population.

Question 2

Which of the following best describes GDP per capita?

Accepted Answer

A measure of average economic output per person

Answer

GDP per capita represents the average economic output or income per person in a country.

Question 3

If the U.S. GDP is $25 trillion and the population is 330 million, what is the approximate GDP per capita?

Accepted Answer

$75,758

Answer

Dividing $25 trillion by 330 million people yields approximately $75,758 per capita.

Question 4

A country with high GDP per capita necessarily has:

Accepted Answer

High average income relative to population

Answer

High GDP per capita only confirms high average income per person, not equality of distribution or other welfare measures.

Question 5

Which index is commonly used alongside GDP per capita to give a broader measure of living standards?

Accepted Answer

Human Development Index (HDI)

Answer

The Human Development Index combines GDP per capita with education and life expectancy to provide a broader view of well-being.

GDP - Gross Domestic Product Practice Test