Ethiopia has a GDP of $8 billion (measured in U. S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U. S. dollars) and a population of 4 million. Calculate per capita GDP for each country. A. Ethiopia = $14.50 Costa Rica = $2250.00

B. Ethiopia = $14.50 Costa Rica = $225.00

C. Ethiopia = $145.00 Costa Rica = $2250.00

D. Ethiopia = $1450.00 Costa Rica = $22,500.00

C. Ethiopia = $145.00 Costa Rica = $2250.00

Explanation:

GDP per capital = GDP / population

For Ethiopia = $8 billion / 55 million

$8 billion / 55 million

= $145.45

≅ $145.00

For Costa Rica

= $9 billion / 4 million

= $9,000,000,000 / 4,000,000,000

= $2250.00

C) Ethiopia = $145.00 Costa Rica = $2250.00

Explanation:

The per capita GDP is defined as the total economic output of a country divided by its total population. The per capita GDP is generally a good way to measure the standard of living in a country, although it doesn't apply to some developing economies in the Middle East. But usually it is a good measurement of how prosperous a country is.

Ethiopia's GDP = $8 billion with a population of 55 million, per capita GDP = $8 billion / 55 million = $145.45 ≈ $145

Costa Rica's GDP = $9 billion with a population of 4 million, per capita GDP = $2,250

We can assume that Costa Rica has a higher living standard than Ethiopia.

*In many Middle Eastern countries, the GDP is very high and the population is very small (e. g. Qatar, Dubai, Saudi Arabia, etc.), and the per capita GDP is extremely high, but it doesn't measure the standard of living of the general population because virtually all the wealth is held by a very small percentage of the population (royal families) while the vast majority of the population is poor.