When does real GNP per capita experience an increase?

Characteristics and Institutions of Developing Countries MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Characteristics and Institutions of Developing Countries

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Subject
Characteristics and Institutions of Developing Countrieseconomics-mcqs › characteristics-and-institutions-of-developing-countries
Published
2 Jun 2019
Last updated
28 May 2026

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Explanation

Real GNP per capita rises only if the economy's real output grows faster than the population. Simply redirecting resources, imposing trade restrictions, or increasing consumption relative to saving does not guarantee higher real GNP per person.

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