CAT 2024 Slot 3 · DILR · Question 17

CAT 2024 Slot 3 previous year question on Tables, with the answer and a step-by-step solution.

TablesData InterpretationType in the answer (TITA)Medium

Set 4: GDP and Population Growth of Ten Countries — this question belongs to a set. Read the full set with all 4 questions →

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	GDP per capita	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	0.1	0.36	0.7%	0.31%
Country 6	0.08	0.08	3.2%	0.61%
Country 7	0.08	0.3	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

Solving the set

Step 1 – Let Country 9's GDP be G and Country 10's GDP per capita be p. Then each country's GDP = (column 2) × G and GDP per capita = (column 3) × p.

Step 2 – Population = GDP ÷ GDP per capita = (column 2 ÷ column 3) × G/p. Since G/p is the same for every country, populations can be compared using column 2 ÷ column 3.

Country	GDP (× G)	GDP per capita (× p)	Population = GDP ÷ GDP per capita (× G/p)	GDP growth	Population growth
1	0.15	0.41	0.366	0.2%	−0.12%
2	0.14	0.25	0.560	0.9%	−0.41%
3	0.13	0.02	6.500	6.5%	0.70%
4	0.12	0.38	0.316	0.5%	0.49%
5	0.10	0.36	0.278	0.7%	0.31%
6	0.08	0.08	1.000	3.2%	0.61%
7	0.08	0.30	0.267	0.7%	−0.11%
8	0.07	0.41	0.171	1.2%	0.71%

Step 3 – Future values. After n years, GDP = GDP₂₀₂₄ × (1 + GDP growth)ⁿ and population = Population₂₀₂₄ × (1 + population growth)ⁿ. GDP per capita rises if the GDP growth rate is higher than the population growth rate.

This question

GDP per capita in 2027 = GDP per capita in 2024 × [(1 + GDP growth)/(1 + population growth)]³. It is lower only if the population grows faster than GDP.

Country	GDP growth	Population growth	GDP grows faster?
1	0.2%	−0.12%	Yes
2	0.9%	−0.41%	Yes
3	6.5%	0.70%	Yes
4	0.5%	0.49%	Yes
5	0.7%	0.31%	Yes
6	3.2%	0.61%	Yes
7	0.7%	−0.11%	Yes
8	1.2%	0.71%	Yes

No country has its population growing faster than its GDP.

Hence, the answer is 0.

CAT 2024 Slot 3 · DILR · Question 17

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