Question

If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?

Select one:
a. The population has decreased.
b. The population has increased, but by less than 2%.
c. None of these is necessarily true.
d. Real GDP has risen by more than 2%.

The key factors in raising standards of living in low-income countries have been increases in

Select one:
a. foreign aid and population.
b. capital accumulation and the money supply.
c. income and government ownership of resources.
d. technology and knowledge.

Answer 1

If GDP per capita rises by 2% between 2015 and 2016,which of the following is necessarily true?

GDP per capita = Real GDP/ Population.Looking at the formula we can conclude the answer which is

answer - c. none of this is necessarily true.

The keys factors in raising standard of living in low income countries have been increases in-

answer- d. technology and knowledge.

A development in eduction and educational infrastructure in low income countries will boost their human capital which will result in improvement in output generation and standard of living as well. More educated workers will be able to contribute more in the economy and their per capita output will increase as well. Investments in research and development or new technologies will help in maintaining sustainable growth for low income countries.