Question

1. Which of the following measures a nation's standard of living? e A. real GDP B. real GDP per person C. nominal GDP D. nominal GDP per person 2. Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP W $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person A. 16 percent B. 13 percent C. 10 percent D. 7 percent

Answer 1

Q1

Answer

Option 2

Real GDP per person measure the standard of ling as it is the production per person in the economy.

Real GDP is the production but the only production can not measure the standard of ling as the size of the population also required to adjusted to compare it.

Nominal GDP is the GDP is in current prices and needed to adjust for prices and population to compare.

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Q2

Answer

Option

Per capita real GDP =real GDP /Population

per capita, real GDP in last year =620000/2.3 ............ working in million

=269565.217

per capita GDP in the year before =502000/2

=251000

Growth rate in the per capita GDP =((the year before per capita GDP -last year per capita GDP)/Last year per capita GDP)*100

=((269565.217-251000)/251000)*100

=7.3965008

=7%

Option D