If per capita output increases by 3 percent and output grows by 4 percent, the population must be:
A)falling at a rate of 7 percent.
B)falling at a rate of 1 percent.
C)increasing at a rate of 1 percent.
D)increasing at a rate of 7 percent.

Question

Quizplus · Accepted Answer

If output grows by 4 percent and per capita output (output per person) increases by 3 percent, it means the population must be growing at a rate that, when combined with the per capita output growth, results in total output growth of 4 percent. The difference between the total output growth and per capita output growth is 1 percent, indicating the population is increasing at a rate of 1 percent.

If Per Capita Output Increases by 3 Percent and Output