A tiny island country has a gross domestic product (GDP) of $25 million and a population of 500 citizens. What is its GDP per capita?(1 point)

Question

Responses

$2,000
$2,000

$50,000
$50,000

$25 million
$25 million

$125 million

Answer 1

To calculate GDP per capita, you divide the total GDP by the population:

\[ \text{GDP per capita} = \frac{\text{GDP}}{\text{Population}} = \frac{25,000,000}{500} = 50,000 \]

Therefore, the GDP per capita is $50,000.