(a)[12]
In 2012, a table showing Gross Domestic Product (GDP) per head indicated that only three of the world's ten richest countries had populations above 7 million. These were the United States: 315 million; the United Arab Emirates: 8.2 million; and Switzerland: 8 million. Explain how GDP is calculated and show how GDP at market prices is different from net national income at factor cost (basic prices).
(b)[13]
Classifications often separate developed (rich) countries from developing (poor) countries. Consider in what sense a developing country is described as ‘poor’ and discuss whether the best route to becoming developed (rich) would be to reduce its population size.