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Question
Statistics
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 $10,000. (E) is incorrect because the population size is not required to interpret the average income from GDP per capita
step 5
Identify the correct answer: (D) is correct because it acknowledges that GDP per capita is an average, which may not represent the typical income due to income inequality
Answer
D
Key Concept
GDP per capita as an average
Explanation
GDP per capita is the average economic output per person and does not reflect the distribution of income among individuals.$

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