Characteristics and Institutions of Developing Countries
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- Characteristics and Institutions of Developing Countrieseconomics-mcqs › characteristics-and-institutions-of-developing-countries
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
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Under what condition does the real GNP per capita increase?
Multiple choice question for Characteristics and Institutions of Developing Countries. Select an option, then review the explanation below.
Explanation
Real GNP per capita rises when the economy's real output grows faster than the population, meaning the average income per person improves. Shifting resources away from investment, imposing trade barriers, or increasing consumption relative to savings do not directly lead to an increase in real GNP per capita.
More Characteristics and Institutions of Developing Countries MCQs
Practice related questions from the same subject.
- 1.What characteristic sets a dual economy apart from other types of economies?
- 2.What defines a dual economy in a country?
- 3.What is the ratio between the population density of developing nations and the total population of developed nations?
- 4.In low-income nations, how much surplus does the typical farming household generate?
- 5.If the real income of Developing Island rises from $120,000 in 2005 to $160,000 in 2006, and its population grows from 1,000 to 1,100 during that time, approximately how much did the real income per person increase?