A country has a Gross National Product (GNP) of ₦500 billion and a population of 100 million people. What is the per capita income?
A₦500
B₦5,000CORRECT
C₦50,000
D₦500,000
GCEEconomicsEconomic Development2019
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Why the answer is B, and why the others tempt you.
Per capita income is calculated by dividing total GNP by the total population. ₦500 billion ÷ 100 million = ₦500,000,000,000 ÷ 100,000,000 = ₦5,000. This figure represents the average income per person in the country.
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