Question

Country X's population was approximately 1.2 billion (or 1,200 million). That same year, Country Y's population was approximately 900 million. With which of the following real GDP would Country X's standard of living have been considered higher than Country Y's that year?

1 Country X's real GDP = 900 billion; Country Y's real GDP = 500 billion

2 Country X's real GDP = 24 trillion; Country Y's real GDP = 19 trillion

3 Country X's real GDP = 18 trillion; Country Y's real GDP = 14 trillion

4 Country X's real GDP = 12 trillion; Country Y's real GDP = 10 trillion

Answer 1

X country's standard of living would be higher than Y when the per capita income of X would be higher than Y.

The per capita income is given as

GDP of the country / Population of the country.

In first case the per capita income of X would be

GDP of X/ population of X= 900 billion /1.2 billion =$750.

Per capita income of Y= 500 billion /0.9 billion = 555.55$

Since the per capita income is higher of X than Y so X would have higher standard of living than Y.

In all other cases, the per capita income of Y is greater than X and hence Y has a higher per capita income and standard of living than X in these cases.

So the answer would be option A)

(You can comment for doubts)