Practice Quiz

CLEP Principles of Macroeconomics Exam Prep

Category - Macroeconomics

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How do economists compare how rich or poor different nations are?
  1. By measuring per capita GDP
  2. By measuring GNP
  3. By looking at the total GDP
  4. By dividing GDP by the nation’s area in square miles
Explanation
Answer - A - Economists compare how rich or poor different nations are by measuring per capita GDP.

Key Takeaway: Because countries vary so much as far as land mass or population is concerned, economists prefer to look at GDP per capita (per person in the economy). This allows economists to analyze living standards across many nations.
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