Question

Why might a district with a high GDDP have a low per capita income?

• A. The income generated is concentrated in the hands of a few, leading to significant income inequality.
• B. A large share of the profits from industries contributing to the GDDP is transferred outside the district.
• C. The district suffers from a high unemployment rate or a large dependent population.
• D. Because its population is very large.

Answer 1

Answer:

D. Because its population is very large.

• Per capita income is GDDP divided by population. A large population can bring down the average income even if the total GDDP is high.