



Home > DEP Home > DEPweb > Learning Modules > GNP per Capita  
GNP per Capita  


Complete these exercises with information from the Text.  
Text Exercises 1. Read the definition of GNP per capita and answer the following questions:
2. Read the definitions of lowincome, middleincome and highincome countries and answer the following questions:
3. The items listed below would be included in calculating a country’s GNP. Which items are goods? Which are services?
4. Answer each of the following questions briefly, referring back to the Text if necessary.
5. Calculate GNP per capita for countries A and B using this formula: GNP ÷ Population = GNP per capita
Based on your answers, identify each country as low income, middle income, or high income. 6. Use the population information in the table below to answer the question that follows.
How many times greater is the average GNP per capita of highincome countries than that of lowincome countries? 7. Read the definition of growth rates, then calculate the annual GNP per capita growth rates for countries A and B using the following formula:
Note: Average annual growth rates of GNP per capita for a period of years provide a better picture than rates for a single year. Calculating any growth rate for a period longer than a year requires more complicated mathematical formulas than the one used to calculate an annual rate. 8. Purchasing power parity (PPP) is used to compare how much a dollar can buy in different countries. If GNP per capita goes up after being adjusted for PPP, one can buy more goods and services than the GNP per capita figure would suggest. If it goes down after adjustment, one can buy less than the figure would suggest. Look at the following table and answer the questions below.
9. Natural resource accounting tries to measure and allow for the costs of depleting natural resources and degrading the environment that can be part of economic growth. Listed below are some products that would add value to a country’s GNP. For each product, list some potential environmental and resource costs that might not be recognized in GNP, but which would be included in natural resource accounting.


Explore the Text:  


