If output increases by 2 percent and population growth is 3 percent, per capita output:
A)falls by about 5 percent.
B)falls by about 1 percent.
C)grows by about 1 percent.
D)grows by about 5 percent.

Question

Quizplus · Accepted Answer

Per capita output is the ratio of total output to the population size. If output increases by 2% but the population grows by 3%, per capita output decreases because the denominator (population) is increasing faster than the numerator (output). The approximate change can be calculated using the formula for percentage change in ratios, which results in a decrease of about 1%.

If Output Increases by 2 Percent and Population Growth Is