107k views
3 votes
The GDP of country A is $400,000. The GDP of country B is $800,000. Does this mean that the per capita output of country B is about twice that of country A? Explain.

1 Answer

7 votes
No. GDP is an acronym which stands for Gross Domestic Product. This value is the total salary of a country as a whole. The per capita income is the average salary of an individual in a country. Though Country B's GDP is twice that of Country A, without knowing the population size, any hypothesis regarding the per capita income is irrelevant.
User Clarisa
by
8.1k points

No related questions found