Question

If the value of the goods and services a country produces stays the same while its population increases, which statement must be true?

A. The country’s total GDP has increased.
B. The country’s per capita GDP has decreased.
C. The country’s unemployment rate has decreased.
D. The country’s rate of inflation has increased.

Answer 1

B. **The country’s per capita GDP has decreased.**

If the value of goods and services produced (GDP) remains the same while the population increases, the GDP per capita (per person) decreases. Per capita GDP is a measure of the average economic output per person, so when the population increases without a corresponding increase in GDP, the average economic output per person decreases.