Question #138388
State whether each of following statements is “True” or “False” (Explain why if the
statement is false.)
A. When the GDP growth rate is 3% and its population growth is 4%, its GDP
per capita is higher.
B. Businessmen can make more profit by selling their goods in a country with a
higher GDP growth rate than a country with a lower GDP growth rate.
statement is false.)
A. When the GDP growth rate is 3% and its population growth is 4%, its GDP
per capita is higher.
B. Businessmen can make more profit by selling their goods in a country with a
higher GDP growth rate than a country with a lower GDP growth rate.
Expert's answer
Statement A is false.
When the GDP growth rate is 3%and it's population is 4%there is a lower GDP per capital.
GDP per capita shows a countries economic output per person.
In this case the population percentage is higher than the GDP percentage .
When we divide the GDP percentage by the population percentage,we get alower GDP per capita.
Statement B is true.
Business can make more profit by selling there goods in a country with lower GDP growth rate .
Countries with lower GDP is likely not able to produce there own goods due to there poor economic growth .Therefore they will tend to import more .
With the increased demand , the exporting business makes more profit.
