Question

Which of the following statements is true?

A. The GDP per capita has almost been constant since the beginning of the 20th century in most of the western world.

B. The average GDP per capita of a nation at a particular point of time is not the same as the income of all individuals in that nation.

C. GDP per capita is a useful to tool to study the disparities in standards of living in a country.

D. GDP per capita decreases with a decrease in population and increases with an increase in population, GDP remaining unchanged.

Which of the following is a problem associated with extreme levels of poverty?

A. High literacy

B. Low fertility

C. High life expectancy

D. High infant mortality

On average, growth in per capita income is associated with a:

A. fall in poverty.

B. rise in poverty.

C. fall in inequality.

D. rise in inequality.

Which of the following statements is true?

A. Economic growth is the direct cause of declining poverty.

B. Economic growth is the direct cause of declining inequality.

C. Growth in unemployment is the direct cause of declining poverty.

D. There are some countries where growth and poverty have both increased.

Answer 1

1) option B is true. GDP per capita is GDP divided by population and if population decrease is GDP per capita should increase. GDP per capita has increased in many countries by multiple times in this century. also note that it is not a useful measure to determine the standards of living in the country. However it is true that GDP per capita is not same as income of all the individuals in the country because income varies a lot across different groups

2) option d is correct because when poverty is very high mortality rate as well as infant mortality rate is also high.

3) option A is correct fall in poverty

4) option D is correct