In 2010,the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000.In 2011 it had a population of 5,100 and real GDP of 520,200.During 2011 real GDP per person in Bovina grew by
A)2 percent,which is high compared to average U.S.growth over the last one-hundred years.
B)2 percent,which is about the same as average U.S.growth over the last one-hundred years.
C)4 percent,which is high compared to average U.S.growth over the last one-hundred years.
D)4 percent,which is about the same as average U.S.growth over the last one-hundred years.

Question

Quizplus · Accepted Answer

Real GDP per person can be calculated by dividing real GDP by the population. 
Real GDP per person in 2010 = 500,000/5,000 = 100 
Real GDP per person in 2011 = 520,200/5,100 = 102 
Therefore, the growth in real GDP per person from 2010 to 2011 is (102-100)/100 = 0.02 or 2%. 
This is higher than the average U.S. growth over the last 100 years, which has been around 1.8%. Therefore, choice C is the best answer.

In 2010,the Imaginary Nation of Bovina Had a Population of 5,000