Neco 2022 Economics Question 39

Practice objective / multiple choice question 39 from the 2022 Neco Economics examination.

Neco 2022 Economics Objective / Multiple Choice Hard Difficulty
Question 39 NECO • 2022 • ECONOMICS • objective

Two countries, A and B, start with the same per‑capita real GDP of \(\text{₦}50{,}000\). Over the next 10 years, Country A's real GDP grows at an average annual rate of 5\% while its population grows at 2\% per year. Country B's real GDP grows at 3\% per year and its population at 1\% per year. Assuming compound growth, determine after 10 years (i) the per‑capita real GDP of each country (rounded to the nearest naira), (ii) which country has the higher per‑capita GDP and by how much, and (iii) the average annual growth rate of per‑capita GDP for each country (to two decimal places).

Answer Options

A. Country A per‑capita GDP ≈ ₦66,805; Country B per‑capita GDP ≈ ₦60,831; Country A is higher by about ₦5,000; average annual per‑capita growth rates - A: 2.94 % p.a., B: 1.98 % p.a.
Correct Answer B. Country A per‑capita GDP ≈ ₦66,805; Country B per‑capita GDP ≈ ₦60,831; Country A is higher by about ₦5,974; average annual per‑capita growth rates - A: 2.94 % p.a., B: 1.98 % p.a.
C. Country A per‑capita GDP ≈ ₦68,000; Country B per‑capita GDP ≈ ₦60,831; Country A is higher by about ₦7,169; average annual per‑capita growth rates - A: 3.00 % p.a., B: 1.98 % p.a.
D. Country A per‑capita GDP ≈ ₦66,805; Country B per‑capita GDP ≈ ₦62,000; Country A is higher by about ₦4,805; average annual per‑capita growth rates - A: 2.94 % p.a., B: 2.10 % p.a.
Correct Answer
B
Correct Option:
Country A per‑capita GDP ≈ ₦66,805; Country B per‑capita GDP ≈ ₦60,831; Country A is higher by about ₦5,974; average annual per‑capita growth rates - A: 2.94 % p.a., B: 1.98 % p.a.

About This Question

This is Neco 2022 Economics Question 39. It is one of the objective questions from the 2022 Neco Economics examination.

Difficulty level: Hard .

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