Per capita GDP will rise if GDP:

• A. increases faster than the population
• B. decreases while the population remains constant
• C. increases at the same rate as the population
• D. remains constant as the population increases

Answer: (A)

Verified step by step guidance

1. Understand that per capita GDP is calculated as the total GDP divided by the total population, expressed as \(\text{Per capita GDP} = \frac{GDP}{Population}\).
2. Recognize that for per capita GDP to rise, the numerator (GDP) must grow at a faster rate than the denominator (population), meaning GDP growth outpaces population growth.
3. Analyze each option by comparing the growth rates of GDP and population: if GDP increases faster than population, per capita GDP rises; if GDP grows at the same rate or slower, per capita GDP stays the same or falls.
4. Note that if GDP decreases while population remains constant, per capita GDP will fall; if GDP remains constant while population increases, per capita GDP will also fall.
5. Conclude that the correct condition for per capita GDP to rise is when GDP increases faster than the population.