Question

How do economists determine the real GDP per capita?

A) They multiply the real GDP by the nominal GDP.
B) They divide the real GDP by the total population.
C) They divide the total population by the real GDP.
D) They divide the nominal GDP by the total population.

Answer 1

The correct answer is B. To determine the real GDP per capita, economists divide the real GDP by the total population.

Step-by-step explanation:

GDP per capita is an economic key figure that shows the annual average production of a country's residents. For the calculation, total GDP is divided by the population of the country. In order to determine the real GDP per capita, the respective inflation rate is used for adjustment.

It is an indicator commonly used to estimate a country's economic wealth. Numerous evidences show that GDP per capita has a positive correlation with the quality of life of the inhabitants of a country.