Question

The Czech Republic has a GDP of 1,800 billion koruny. The exchange rate is 25 koruny/U.S. dollar. The Czech population is 20 million. What is the GDP per capita of the Czech Republic expressed in U.S. dollars?

Short answer

The GDP per capita of the Czech Republic expressed in U.S. dollars is 3,600 U.S. dollars.

Step-by-step solution

Calculate GDP per Capita in Koruny

To find the GDP per capita in koruny, we'll need to divide the GDP of the Czech Republic by the population: GDP per capita (in koruny) = \( \frac{GDP}{population} \) GDP per capita (in koruny) = \( \frac{1,800,000,000,000}{20,000,000} \) = 90,000 koruny

Convert GDP per Capita to U.S. Dollars

Now that we have the GDP per capita in koruny, we'll use the exchange rate to convert it to U.S. dollars: GDP per capita (in US dollars) = \( \frac{GDP \ per \ capita \ (in \ koruny)}{Exchange \ rate} \) GDP per capita (in US dollars) = \( \frac{90,000}{25} \) = 3,600 U.S. dollars So, the GDP per capita of the Czech Republic expressed in U.S. dollars is 3,600 U.S. dollars.