Income and Population Age Structure

Income and Population Age Structure

A) Relationship between per capita GNP and population growth

GNP is the value of all final goods and services produced in an

economy over a period of one year. Thus per capita GNP is the division

of value of goods and services available to each person in a country,

i.e. it is the per head income in a country. And population growth is

the rate, by which population grows in an economy.

From the above drawn diagrams it can be said that the higher the

population growth rate the lower the per capita GNP and vice versa.

This is due to the fact that if the population increases at a faster

rate the GNP will spread over a large number of people thus reducing

the value of the Gross National Product per head. Similarly if the

population grows at a slower rate the GNP is spread over fewer numbers

of people thus increasing the value of the Gross National Product per

head.

To further illustrate this we can take into consideration countries

like Jordan which has a relatively high population growth rate of a

4.9 and a per capita GNP of onl...