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CAT 2024 Slot 3 — DILR Question 20

TablesEasy
Passage / Data

Answer the following questions based on the information given below.

Out of 10 countries -- Country 1 through Country 10 -- Country 9 has the highest gross domestic product (GDP), and Country 10 has the highest GDP per capita. GDP per capita is the GDP of a country divided by its population. The table below provides the following data about Country 1 through Country 8 for the year 2024.

• Column 1 gives the country's identity.
• Column 2 gives the country’s GDP as a fraction of the GDP of Country 9.
• Column 3 gives the country’s GDP per capita as a fraction of the GDP per capita of Country 10.
• Column 4 gives the country’s annual GDP growth rate.
• Column 5 gives the country’s annual population growth rate.

Table of GDP fraction, GDP-per-capita fraction, GDP growth rate and population growth rate for Country 1 to 8

CountryGDP (fraction of C9)GDP per capita (fraction of C10)GDP growth ratePopulation growth rate
Country 10.150.410.2%-0.12%
Country 20.140.250.9%-0.41%
Country 30.130.026.5%0.70%
Country 40.120.380.5%0.49%
Country 50.100.360.7%0.31%
Country 60.080.083.2%0.61%
Country 70.080.300.7%-0.11%
Country 80.070.411.2%0.71%

Assume that the GDP growth rates and population growth rates of the countries will remain constant for the next three years.

The ratio of Country 4’s GDP to Country 5’s GDP in 2026 will be closest to

Answer & solution

  • 1.195

  • B

    0.963

  • C

    1.032

  • D

    1.314

Solution

Medium

The 2024 GDP ratio of C4:C5 is just their GDP fractions; project two years forward using each country's GDP growth rate.

2024 GDP fractions: C4 =0.12=0.12, C5 =0.10=0.10. GDP growth: C4 =0.5%=0.5\%, C5 =0.7%=0.7\%. 2026 is 2 years ahead.

1

Grow each GDP by two years and take the ratio.

GDPC4GDPC5∣2026=0.12 (1.005)20.10 (1.007)2⇒ 1.2×(1.0051.007)2⇒ 1.2×0.9960≈1.195\begin{aligned} &\frac{\text{GDP}_{C4}}{\text{GDP}_{C5}}\bigg|_{2026}=\frac{0.12\,(1.005)^2}{0.10\,(1.007)^2}\\ &\Rightarrow\ 1.2\times\Big(\frac{1.005}{1.007}\Big)^2\\ &\Rightarrow\ 1.2\times0.9960 \approx 1.195 \end{aligned}
≈1.195\approx 1.195
CAT 2024 Slot 3 DILR Q20: The ratio of Country 4’s GDP to Country 5’s GDP in 2026 will be closest to — Solution | TheCATExam