In 2010,the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000.In 2011 the population was 6,200 and real GDP of 128,960.Over the year in question,real GDP per person in Mainland 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

To calculate the real GDP per person in Mainland, we need to divide the real GDP by the population.

Real GDP per person in 2010: 120,000 / 6,000 = 20 
Real GDP per person in 2011: 128,960 / 6,200 = 20.78

The growth rate of real GDP per person can be calculated as:

(20.78 - 20) / 20 x 100% = 3.9%

Since the growth rate is closest to 4%, the best answer is C. It is important to note that this growth rate is higher than the average U.S. growth rate over the last one-hundred years, which was around 2% per year.

In 2010,the Imaginary Nation of Mainland Had a Population of 6,000