Economics--?

Question

How can real GDP per person be higher in one country than in another country even if the first country has lower aggregate real GDP than the second?

Answer 1

The GDP per person (or the Per capita GDP, as we call it) will be higher in one country than another coutry's when the population in the first country is less than that in the other country. We calculate Per Capita GDP by dividing real GDP by the no. of population.
Taking an example,Let the aggregate real GDP of the first country be $ 100,000, and $ 200,000 of the second country. Now, if the population of the first country is 2000 and that of the second country is 5000, then
per capita GDP of the first country is $100,000/2000 = $50, and
per capita GDP of the second country is $200,000/5000 = $40. Hope, it explains your question.

Answer 2

I think because the aggregate GDP acconts for inflation where the real GDP doesn't.

Answer 3

Lower population in the first country

Answer 4

Do you fairly understand supply ingredient economics? that is not in basic terms approximately reducing taxes on company proprietors; it focuses on the two rules that help develop capital for clean and increasing businesses and on the charges of production. The "time-honored expertise" isn't continuously superb. so which you will fairly government flow to each and all the difficulty and cost and administrative cost to tax a company and then spend funds with businesses as a replace of in basic terms letting businesses shop their own annoying-earned funds to start with? that doesn't make lots sense, the two.