Answer:
Per capita GDP can fall even when overall GDP is rising if the population is growing at a faster rate than the GDP is increasing. This situation can be described as follows:
1. **Population Growth:** If the population of a country is increasing at a significant rate, it can outpace the growth in GDP. This means that while the total economic output of the country (GDP) is expanding, the benefits of that growth are spread across a larger number of people, resulting in a lower per capita GDP.
For example, if a country's GDP increases by 3% in a year, but its population also grows by 3%, then the per capita GDP (GDP per person) would remain roughly the same or even decrease slightly due to the increased number of people sharing the economic output.
In essence, per capita GDP measures the average income or economic well-being of each individual in the population. So, if the population is growing faster than the economy, per capita GDP can decline despite overall GDP growth.
Step-by-step explanation: