If per capita output increases by 5 percent and output grows by 3 percent, the population must be:
A)falling at a rate of 8 percent.
B)falling at a rate of 2 percent.
C)increasing at a rate of 2 percent.
D)increasing at a rate of 8 percent.

Question

Quizplus · Accepted Answer

If per capita output increases by 5 percent and total output grows by 3 percent, it implies that the population is growing at a slower rate than per capita output, but since total output is still increasing, the population cannot be decreasing at a rate that offsets the per capita growth entirely. The correct interpretation is that the population must be growing at a rate that, when combined with the per capita growth, results in the total output growth. The difference between the per capita output growth (5%) and the total output growth (3%) suggests the population is growing at a rate that is 2% less than the per capita output growth, indicating a 2% population increase.

If Per Capita Output Increases by 5 Percent and Output