Question

Which of the following countries experienced a decline in total output from 2000 to 2005?

A. Canada.
B. Zimbabwe.
C. China.
D. Burundi.
E. Some countries, such as Zimbabwe, are unable to successfully grow their economies as population growth isgreater than GDP growth.

Answer 1

Answer: The correct answer is "B. Zimbabwe".

Explanation: GDP growth is crucial for an economy, since an increase in it reflects an increase in economic activity. If economic activity picks up, it means that unemployment tends to decrease and that per capita income increases.

In the case of Zimbabwe, population growth is far superior to GDP growth, therefore this makes economic growth much more difficult since there are more people per capita income is diminished.