If a nation has GDP of $12,500 billion and GDP per capita of $62,500, what is the nation’s population?
A. 180 million.
B. 200 million.
C. 625 million.
D. 230 million.
The correct answer and explanation is :
To find the population of a nation using its Gross Domestic Product (GDP) and GDP per capita, we use the formula:
[
\text{Population} = \frac{\text{GDP}}{\text{GDP per capita}}
]
Given:
- GDP = $12,500 billion
- GDP per capita = $62,500
Let’s calculate:
[
\text{Population} = \frac{12,500 \text{ billion}}{62,500}
]
Since 12,500 billion = 12,500,000,000,000 and GDP per capita = 62,500, we divide:
[
\frac{12,500,000,000,000}{62,500} = 200,000,000
]
So, the population is 200 million.
✅ Correct Answer: B. 200 million
🧠 Explanation (300 words):
GDP (Gross Domestic Product) is the total monetary value of all goods and services produced within a country’s borders in a specific time period—typically a year. It serves as a comprehensive scorecard of a given country’s economic health.
GDP per capita is GDP divided by the total population. It provides a rough measure of the average economic output per person and is often used to compare living standards or economic well-being across countries or over time.
In this problem, we’re given the total GDP ($12,500 billion) and the GDP per capita ($62,500). To find how many people are in the country, we rearrange the GDP per capita formula:
[
\text{GDP per capita} = \frac{\text{GDP}}{\text{Population}} \Rightarrow \text{Population} = \frac{\text{GDP}}{\text{GDP per capita}}
]
We substitute the known values:
- GDP = 12,500 billion dollars
- GDP per capita = 62,500 dollars
Dividing the total GDP by GDP per capita yields:
[
\text{Population} = \frac{12,500,000,000,000}{62,500} = 200,000,000 \text{ people}
]
Thus, the country has a population of 200 million.
This calculation is vital in economic analysis, as it can give insights into how wealth is distributed. While GDP per capita is an average, it doesn’t reflect income inequality or cost of living differences—but it’s still a useful indicator for macro-level comparisons.