GK
WORLD GEOGRAPHY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
The higher a country’s GDP per capita, the more income the nation has to meet the needs of the people.
|
|
|
The higher a country’s GDP per capita, the higher the incomes of most people in the country.
|
|
|
The higher a country’s GDP per capita, the lower the cost of goods and services in the country.
|
|
|
The higher a country’s GDP per capita, the higher the number of people living in comfort and wealth in the country.
|
Detailed explanation-1: -Because certain countries have most of their income withdrawn abroad by foreign corporations and individuals, their GDP figure is much higher than the figure that represents their GNI.
Detailed explanation-2: -With the increase in the gross domestic product, the availability of goods and services also increases. However, we cannot say that the per capita availability of goods in the economy increases with an increase in the GDP. This is possible only when the other factors which affect the Welfare are assumed to be constant.
Detailed explanation-3: -In other words, when an economy generates more value per person per year, that typically translates into more money for those working in that economy. Most often, the indicator economists use to determine the prosperity, or well-being, of a country or region is GDP per capita.