The Global Economy Unit Test

Question

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Question
Country A has a GDP of $60,000,000, and Country B has a GDP of 40,000,000. If the populations of Countries A and B are 40,000 and 20,000, respectively, which country is most developed based on per capita GDP, and why?(1 point)
Responses

Country A is more developed because it has a GDP of $60,000,000, while Country B only has a GDP of $40,000,000.
Country A is more developed because it has a GDP of $60,000,000, while Country B only has a GDP of $40,000,000.

Country B is more developed because it produces $2,000 per person, while Country A only produces $1,500 per person.
Country B is more developed because it produces $2,000 per person, while Country A only produces $1,500 per person.

Country A is more developed because it produces $1,500 per person, while Country B has a GDP of $40,000,000.
Country A is more developed because it produces $1,500 per person, while Country B has a GDP of $40,000,000.

Country B is more developed because it produces a GDP of $80,000,000, while Country A only produces $1,500 per person.
Country B is more developed because it produces a GDP of $80,000,000, while Country A only produces $1,500 per person.

Answer 1

To determine which country is more developed based on per capita GDP, we need to calculate the per capita GDP for both countries.

1. Country A:

   • GDP = $60,000,000
   • Population = 40,000
   • Per Capita GDP = GDP / Population = $60,000,000 / 40,000 = $1,500

2. Country B:

   • GDP = $40,000,000
   • Population = 20,000
   • Per Capita GDP = GDP / Population = $40,000,000 / 20,000 = $2,000

Now comparing the two:

• Country A has a per capita GDP of $1,500.
• Country B has a per capita GDP of $2,000.

Since Country B has a higher per capita GDP, it is considered more developed based on this metric.

Correct Response: "Country B is more developed because it produces $2,000 per person, while Country A only produces $1,500 per person."