What does Gross Domestic Product (GDP) tell us about a country?

A. The products it produces.
Incorrect. GDP does not tell us what a country produces, it only tells the value of what is produced.

B. The wealth of the country
Correct! GDP indicates the wealth of a country.

C. The wealth of the people
Incorrect. While GDP indicates the wealth of the country as a whole, that wealth may be only in the hands of a small few.

D. The type of government it has
Incorrect. GDP does not indicate the type of government of a country.

Which of the following can we infer from a country’s GDP?

A. Countries with lower GDP are more industrialized.
Incorrect. Countries with lower GDP are usually not industrialized.

B. Countries with a high GDP have democratic governments.
Incorrect. Although most countries with higher GDP have democratic governments, a high GDP does not mean that they do.

C. Countries with higher GDP are more industrialized.
Correct! A high GDP signifies that a country has a lot of industries and produces a lot of goods.

D. Countries with low GDP have higher urban populations.
Incorrect. Usually countries with low GDP have more rural populations than urban populations.

Which of the following tells us what effect a rural population has a countries GDP?

A. Rural populations work in factories.
Incorrect. Most factories are located in urban areas not rural areas.

B. Countries with a high rural population will usually have a lower GDP.
Correct! The greater rural population a country has, the lower its GDP.

C. Countries with high rural populations will usually have a high GDP.
Incorrect. Countries with high rural populations will usually have low GDP.

D. A country’s high rural population has no effect on GDP.
Incorrect. Population distribution does have an impact on GDP.