Question

The Kingdom of Happiness produced a GDP of 20 billion smiles (name of currency) and has a population of 12 million. The exchange rate is 2 smiles per U.S. dollar. Calculate the per capita GDP of this country in U.S. dollars (HINT: Be careful with the use of millions and billions).

A. $83.33
B. $83,333
C. $500
D. $833.33

Answer 1

To find the per capita GDP of the Kingdom of Happiness, divide the total GDP in smiles by the population to get per capita GDP in smiles, and then divide that figure by the exchange rate to convert it to U.S. dollars. The answer is $833.33 per person.

Step-by-step explanation:

To calculate the per capita GDP of the Kingdom of Happiness in U.S. dollars, we need to convert the GDP from smiles to U.S. dollars. Given that the exchange rate is 2 miles per U.S. dollar, we can calculate the GDP in U.S. dollars by dividing the GDP in smiles by the exchange rate. So, 20 billion smiles / 2 miles per U.S. dollar = 10 billion U.S. dollars.

Next, we divide the GDP in U.S. dollars by the population of the Kingdom of Happiness to obtain the per capita GDP. So, 10 billion U.S. dollars / 12 million people = $833.33 per capita GDP in U.S. dollars.

Therefore, the correct answer is D. $833.33.

To calculate the per capita GDP of the Kingdom of Happiness in U.S. dollars, you need to follow these steps:

1. Divide the total GDP by the population to find per capita GDP in smiles: 20 billion smiles / 12 million people = 1,666.67 smiles per person.
2. Then, convert the per capita GDP to U.S. dollars by dividing by the exchange rate: 1,666.67 miles / 2 miles per U.S. dollar = $833.33 per person.

So, the per capita GDP of the Kingdom of Happiness in U.S. dollars is $833.33, which matches answer choice D.