Increase in Per Capita GDP: Factors and Implications

Factors Affecting Per Capita GDP Growth

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Question

Which of the following will most likely result in an increase in the per capita GDP of a country?

Answers

A. an increase in population

B. improvement in the average skill level of the labor force

C. an increase in youthful workers as a proportion of the labor force

D. an increase in the number of retired workers

E. an increase in the GDP deflator

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Explanations

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A. B. C. D. E.

Education, training and skill enhancing experience can improve the quality of the labor force and expand the supply of human resources. Such a change causes the potential output of the country to increase so that it is possible to produce and sustain a larger rate of output (in nominal and per capita terms).

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