Question

In 2013, according to the International Monetary Fund, India had the world’s 10th-highest nominal GDP, the 140th-highest nominal GDP per capita, and the 43rd-highest real GDP growth rate. What does each of these indicators tell us about the Indian economy and how life in India compares to life in other countries?

a) India has a huge economy that produces lots of goods and services (highest nominal GDP), is still fairly poor (highest real GDP growth rate), but has a rapidly increasing standard of living (highest nominal GDP per capita).

b)India has a huge economy that produces lots of goods and services (highest real GDP growth rate), is still fairly poor (highest nominal GDP per capita), but has a rapidly increasing standard of living (highest nominal GDP).

c)India has a huge economy that produces lots of goods and services (highest nominal GDP per capita), is still fairly poor (highest nominal GDP), but has a rapidly increasing standard of living (highest real GDP growth rate).

d)India has a huge economy that produces lots of goods and services (highest nominal GDP), is still fairly poor (highest nominal GDP per capita), but has a rapidly increasing standard of living (highest real GDP growth rate).

Answer 1

The answer is "D".

Nominal GDP tells the size of the economy, GDP per capita tells about the standard of living real GDP tells the growth rate. The answer will be : India has a huge economy that produces lots of goods and services (highest nominal GDP), is still fairly poor (highest nominal GDP per capita), but has a rapidly increasing standard of living (highest real GDP growth rate).