Question

If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2016, we would say that in the year 2016, the average American could buy ________ times as many goods and services as the average American in 1950.

A)1/8
B)4
C)8
D)12

Answer 1

The average American in 2016 could buy 8 times as many goods and services as the average American in 1950.

Step-by-step explanation:

To determine how many times more goods and services the average American could buy in 2016 compared to 1950, we need to calculate the ratio of the real GDP per capita in 2016 to 1950.

The real GDP per capita in 1950 was $6,000, and it increased to $48,000 in 2016. To find the ratio, we divide $48,000 by $6,000:

Ratio = $48,000 / $6,000 = 8

Therefore, in the year 2016, the average American could buy 8 times as many goods and services as the average American in 1950. The answer is option C) 8.