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Get access to the detailed solutions to the previous years questions asked in IIM IPMAT exam
We are given the following table,
This table compares the GDP, GDP per capita, and population of eight countries, all of which are referenced using a consistent set of units.
Specifically, the GDP values are all given with the same country as the reference point (The reference point being Country 9)
Similarly, the GDP per capita among the eight countries in the table is given using the same reference point (The reference point being Country 10)
As a result, when comparing two countries from the list in terms of GDP, GDP per capita, or population, we can directly use the values presented in the table, since they are all based on a uniform reference point.
We can compare the population of two countries using the formula
For example, to compare the GDP of Country A and Country B, we can simply use the values listed under "GDP" in the table, as both are referenced using the same country throughout. This eliminates the need for additional conversions or adjustments.
We are asked to find the number of countries where the GDP per capita is lower in 2027 than it was in 2024.
For the GDP per capita to be lower in the consequent years, the population growth rate has to exceed the GDP growth rate, since GDP per capita is nothing but GDP divided by the population. That means if the population growth rate is lesser than that of the GDP growth rate, the GDP per capita will only increase.
We can clearly see that none of the following countries fall in the scenario where GDP growth rate is lesser than that of the population growth rate. Countries 1, 2 and 7 have actually decreasing population rates thereby definitely increasing the GDP per capita.
The rest of the countries have GDP growth rates larger than the population growth rates.
Hence, we can conclude that, none of the countries will have a smaller GDP per capita in 2027 when compared to 2024.