CAT 2024 Slot 3 — DILR Question 22
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.
| Country | GDP (fraction of C9) | GDP per capita (fraction of C10) | GDP growth rate | Population growth rate |
|---|---|---|---|---|
| Country 1 | 0.15 | 0.41 | 0.2% | -0.12% |
| Country 2 | 0.14 | 0.25 | 0.9% | -0.41% |
| Country 3 | 0.13 | 0.02 | 6.5% | 0.70% |
| Country 4 | 0.12 | 0.38 | 0.5% | 0.49% |
| Country 5 | 0.10 | 0.36 | 0.7% | 0.31% |
| Country 6 | 0.08 | 0.08 | 3.2% | 0.61% |
| Country 7 | 0.08 | 0.30 | 0.7% | -0.11% |
| Country 8 | 0.07 | 0.41 | 1.2% | 0.71% |
Assume that the GDP growth rates and population growth rates of the countries will remain constant for the next three years.
For how many countries among Country 1 through Country 8 will the GDP per capita in 2027 be lower than that in 2024?
Answer & solution
Answer: 0
Medium
GDP per capita grows by . It falls over 3 years exactly when GDP growth is below population growth . Count those countries.
GDPpc 2027 < 2024 $\iff (1+r)^3<(1+n)^3 \iff r
Check $r