Per Capita GDP Will Definitely Increase If

question 117

Multiple Choice

Per capita GDP will definitely increase if

• A)GDP increases more rapidly than population.
• B)GDP and population increase at the same rate.
• C)Population increases more rapidly than GDP.
• D)Population and GDP decrease at the same rate.

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Definitions:

Scarce Factors

Resources that are limited in availability and are constraint to economic production.

Capital

Refers to financial assets or physical resources that are used in producing goods or providing services.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than others.

Comparative Advantage

An economic principle stating that countries or entities gain and benefit from trade when they specialize in producing goods for which they have a lower opportunity cost than their trading partners.