Question

The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 25 koruny/U.S. dollar. The Czech population is 20 million. What is the GDP per capita of the Czech Republic expressed in U.S. dollars?

a) $2,250
b) $225
c) $45,000
d) $1,800

Answer 1

The GDP per capita of the Czech Republic, when converted to U.S. dollars, is $3,600. This is calculated by dividing the GDP in U.S. dollars (72 billion) by the population (20 million). The options provided in the question do not match the calculated figure.

Step-by-step explanation:

To calculate the GDP per capita of the Czech Republic expressed in U.S. dollars, we can use the information provided: the GDP in koruny, the exchange rate, and the population of the country. The formula for GDP per capita is the total GDP divided by the population size, and then we convert it to U.S. dollars using the exchange rate.

First, we convert the total GDP to U.S. dollars by dividing the GDP in koruny (1,800 billion koruny) by the exchange rate (25 koruny/U.S. dollar):

• 1,800 billion koruny / 25 koruny/U.S. dollar = 72 billion U.S. dollars.

Next, we calculate the GDP per capita in U.S. dollars by dividing the total GDP in U.S. dollars by the population of the Czech Republic (20 million people):

• 72 billion U.S. dollars / 20 million people = $3,600 per capita.

Given the provided options, none of them correctly match the calculated value of $3,600. Thus, there might be a mistake in the options or the original data provided.