GDP per capita is calculated by dividing the total Gross Domestic Product by the total population. In this case, $130,000,000 divided by 20,000 equals $6,500. This metric provides an average economic output per person, which is a standard indicator for measuring the standard of living within a specific geographic region or country.

GDP measures the value of production within a country's borders, while GNP measures the value of production by a country's residents. If GDP exceeds GNP, it implies that the income earned by foreign factors of production within the country is greater than the income earned by domestic factors of production abroad. This indicates a net outflow of factor income, meaning foreign entities are contributing more to the domestic output than domestic entities are contributing to output abroad.

National income is the total value of all final goods and services produced within a country's borders during a specific period, usually a year. It serves as a primary indicator of a nation's economic performance and standard of living, reflecting the total income earned by factors of production.

The economic growth rate is calculated as the percentage change between two periods. The formula is ((New Value - Old Value) / Old Value) * 100. Substituting the given values: ((364 - 360) / 360) * 100 = (4 / 360) * 100 = 1.11%. This represents the annual growth rate of real GNP per capita.

Transfer payments are redistributive payments made by the government to individuals for which no current good or service is produced in exchange. Unemployment benefits are a classic example of transfer payments because they provide income support to individuals without requiring them to perform labor or provide goods in return during that period.

National income represents the total monetary value of all final goods and services produced within a nation's borders over a specific period, typically one year. It serves as a primary indicator of a country's economic performance and the total output generated by its factors of production.

GNP is the total market value of all final goods and services produced by the residents of a country during a specific period, usually one year. To avoid double counting, only the value of final goods is included, excluding intermediate or semi-finished goods.

Real GDP per capita is the standard measure for living standards because it adjusts for inflation, providing a constant-price valuation of output per person. By removing the effects of price changes and population growth, it reflects the actual volume of goods and services available to the average citizen, offering a clearer picture of purchasing power and economic welfare.

Increasing productivity means producing more output per unit of input. When labor and capital become more efficient, the total output of an economy rises, which directly contributes to higher GNP and higher GDP per capita, assuming population growth does not outpace output growth.

The provided answer is incomplete or potentially misleading. To convert GDP at market prices to factor cost, one must subtract indirect taxes and add back subsidies. The source answer suggests only subtracting subsidies, which is mathematically incorrect according to standard national accounting identities. This indicates a conflict with established economic definitions.