A tiny island country has a gross domestic product (GDP) of $25 million and a population of 500 citizens. What is its GDP per capita?
Responses:
$25 million
$2,000
$50,000
$125 million
The correct answer is $50,000.
To calculate the GDP per capita, you divide the country's GDP by its population.
In this case, the GDP per capita would be $25 million divided by 500 citizens, which equals $50,000.