Problem 31 Ethiopia has a GDP of \$8 billio... [FREE SOLUTION]

Chapter 19: Problem 31

Ethiopia has a GDP of \$8 billion (measured in U.S. dollars) and a population of 55 million. costa Rica has a GDP of $\$ 9$ billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher.

Short Answer

Expert verified

The per capita GDP for Ethiopia is $\frac{8}{55}$ billion USD, approximately 0.145 billion USD. For Costa Rica, the per capita GDP is $\frac{9}{4}$ billion USD, approximately 2.25 billion USD. Costa Rica has a higher per capita GDP compared to Ethiopia.

Step by step solution

Find the per capita GDP for Ethiopia

To find the per capita GDP for Ethiopia, we will use the given data: Total GDP of Ethiopia equals $8 billion, and the total population of Ethiopia is 55 million. Using the formula: Per capita GDP_Ethiopia = (Total GDP_Ethiopia) / (Total population_Ethiopia) Per capita GDP_Ethiopia = $\frac{8}{55}$ billion USD

Find the per capita GDP for Costa Rica

To find the per capita GDP for Costa Rica, we will use the given data: Total GDP of Costa Rica is $9 billion, and the total population of Costa Rica is 4 million. Using the formula: Per capita GDP_Costa Rica = (Total GDP_Costa Rica) / (Total population_Costa Rica) Per capita GDP_Costa Rica = $\frac{9}{4}$ billion USD

Compare the per capita GDP of both countries

Now that we have calculated the per capita GDP for both countries, we will compare them to find out which country has a higher per capita GDP. Per capita GDP_Ethiopia = $\frac{8}{55}$ billion USD 鈮� 0.145 billion USD Per capita GDP_Costa Rica = $\frac{9}{4}$ billion USD 鈮� 2.25 billion USD. Since 2.25 billion > 0.145 billion, we can conclude that Costa Rica has a higher per capita GDP compared to Ethiopia.