If GDP per capita was $500 in 2002 and the population was 25,000, the GDP would have been approximately
A. $5,000,000.
B. $7,500,000.
C. $125,000,000.
D. None of the choices are correct.
The correct answer and explanation is :
To find the GDP, we use the formula:
[
\text{GDP} = \text{GDP per capita} \times \text{Population}
]
Given:
- GDP per capita = $500
- Population = 25,000
[
\text{GDP} = 500 \times 25,000 = 12,500,000
]
So, GDP = $12,500,000.
Now let’s evaluate the answer choices:
- A. $5,000,000 → Too low
- B. $7,500,000 → Still too low
- C. $125,000,000 → Too high
- D. None of the choices are correct → ✅ Correct answer
Explanation (300 words):
Gross Domestic Product (GDP) is a core economic indicator used to assess the economic performance of a country or region. It represents the total monetary value of all goods and services produced over a specific time period. GDP per capita, on the other hand, measures the average economic output per person and is calculated by dividing the GDP by the total population.
To reverse this calculation and find the total GDP when given the GDP per capita and population, we simply multiply the two values.
In this case, the GDP per capita is $500, and the population is 25,000. When multiplied:
[
500 \times 25,000 = 12,500,000
]
This figure represents the total economic output of the population at the given per-person rate. Once the math is performed, it becomes clear that none of the listed choices (A, B, or C) match the correct value. Choice A yields only $5 million, which underestimates the actual value by more than half. Choice B, $7.5 million, is still short. Choice C, $125 million, overshoots the correct figure tenfold.
This leaves option D, “None of the choices are correct,” as the correct and accurate answer. It’s a reminder to always perform the necessary calculations rather than assuming one of the provided choices must be correct. This also underscores the importance of basic numeracy when interpreting economic data, as even small errors can lead to significant misjudgments in analysis or policy decisions.