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Posted 3 months ago

Madinsonia has a real gross domestic production (GDP) per capita of $10,000\$ 10,000.

Which of the following statements can we infer from this information?
Choose 1 answer:
(A) Every person has an income of at least $10,000\$ 10,000
(B) Every person has an income of exactly $10,000\$ 10,000
(c) Every person has an income of less than $10,000\$ 10,000
(D) The average income of a person is $10,000\$ 10,000, but this might not be the typical person's income
(E) Without knowing the size of the population, we cannot say what a typical person earns
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Answer from Sia
Posted 3 months ago
Solution by Steps
step 1
Understand the definition of GDP per capita: GDP per capita is the average economic output per person and is calculated by dividing the total GDP of a country by its population
step 2
Interpret the given GDP per capita: A GDP per capita of 10,000meansthat,onaverage,eachpersoncontributes10,000 means that, on average, each person contributes 10,000 to the nation's total economic output
step 3
Analyze the answer choices: We need to determine which statement can be inferred from the average income represented by GDP per capita
step 4
Eliminate incorrect answer choices: (A) and (B) are incorrect because GDP per capita is an average, not a minimum or exact income. (C) is incorrect because it is possible for some individuals to have an income greater than $10,000. (E) is incorrect because the population size is not required to interpret the average income from GDP per capita
step 5
Identify the correct answer: (D) is correct because it acknowledges that GDP per capita is an average, which may not represent the typical income due to income inequality
Key Concept
GDP per capita as an average
GDP per capita is the average economic output per person and does not reflect the distribution of income among individuals.$

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