The GDP’s (at factor cost) and population sizes of two

countries A and B were identical in a particular year. Which of the following statements is then necessarily true for that year?

A A and B had identical per capital incomes. Correct Answer Incorrect Answer

B A and B were equally wealthy countries Correct Answer Incorrect Answer

C A and B had identical levels of labour productivity Correct Answer Incorrect Answer

D Neither of the three— (a), (b), and (c) need to be case Correct Answer Incorrect Answer

Solution

On the basis of the given information, neither of the conditions stated shall necessarily be true. Per capita income is computed on the basis of national product; wealth of a nation is determined by a number of factors; and same population size does not imply same level of labour productivity.

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