When do increases in real per capita GNP take place ?
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Answer: C. the rate of growth in real GNP is greater than the rate of growth in the population
Explanation
Real per capita GNP measures total economic output divided evenly by the total national population count. Increases in this metric occur when total economic growth outpaces the underlying population growth rate. If population grows faster than real GNP, the average material standard of living declines. Gross National Product measures the total economic value produced by a nation's residents worldwide. Per capita figures convert macroeconomic aggregates into average individual welfare indicators for comparison. Economic development policies focus heavily on raising real per capita income to alleviate poverty.
International organizations use real per capita GNP growth to track comparative economic progress across countries. Rapid population growth can dilute the benefits of national economic expansion if output gains are lagging. Standard of living improvements depend directly on maintaining a positive gap between economic and population growth. Shifting resources away from investment goods toward consumer goods reduces long-term capital accumulation. Tariffs and trade barriers restrict commercial exchange, which typically harms economic growth and living standards. Rising consumption relative to savings reduces capital investment funds necessary for sustained long-term growth.
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Answer: D. all of the above
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