Increasing in the real GNP per capita occur when ?
Correct answer: C. the rate of growth in real GNP is greater than the rate of growth in the population
- A. government programs direct resources away from investment goods to consumer goods.
- B. tariffs and quotas prevent countries from trading and thus prevent dollars from leaving each country
- C. the rate of growth in real GNP is greater than the rate of growth in the population
- D. the level of consumption expenditures rises relative to the level of savings
Explanation
Real GNP per capita increases when real GNP grows faster than the population, because the total output is then being divided among relatively fewer additional people. The other choices do not establish an increase in output per person.
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