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GNP per Capita
Complete these exercises with information from Chart 2.

Chart 2 Exercises with Answers


Chart 2. Growth of GNP, Population, and GNP per Capita, 1980–1998

1. Read the definition of growth rates then use the data from Chart 2 to complete the following table:

  GNP
growth
rate
Population
growth
rate
GNP per capita
growth
rate
Low-income economies (with China and India) [6.7%] [1.9%] [4.7%]
Low-income economies (without China and India) [4.1%] [2.4%] [1.6%]
Middle-income economies [2.3%] [1.6%] [0.7%]
High-income economies [2.7%] [0.6%] [2.0%]


2. When calculating data trends by country income groups, the low-income country group data are frequently calculated both with and without China and India. This is because China and India are so large that trends in their individual populations, economies, and environments can overshadow trends throughout the remaining countries in the group.

  1. Looking at Chart 2, how do the low-income country growth rates with and without China and India compare? [The GNP growth rate with China and India is much higher than without; the population growth rate is lower with China and India than without; and the GNP per capita growth rate is much higher with China and India than without. In fact, when China and India are included among the low-income countries, the GNP per capita growth rate is the highest of all the income groups, and when China and India are not included, it drops to one of the lowest.]
  2. What do these comparisons tell you about growth rates of GNP, population, and GNP per capita in China and India? [China and India’s combined GNP growth rate is higher than most other low-income countries; their combined population growth rate is lower; and their combined GNP per capita growth rate is higher.]

3. Study the growth rate data from the table you created for question 1. Imagine you are the leader of a country and have pledged to improve the standard of living for your average citizens. Which income group’s GNP growth rate would you try to match? Explain. [The low-income countries with China and India because their GNP growth rate is the highest of any group.] Which income group’s population growth rate would you try to imitate? Explain. [The high-income countries, because their population growth rate is the lowest of any group.] Why would this be a good combination? [Because a high GNP growth rate coupled with a low population growth rate would result in a high GNP per capita growth rate. This would mean that the average person’s standard of living would most likely improve.]

4. Looking back at the Text and at the data in the table you created for question 1, argue for or against the following statement: "Raising standards of living in low-income countries depends on one thing only: reducing population growth." [Answers will vary.]

 
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