Question

1. Economic growth around the world

The following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's average annual growth rate during this period. For example, real income per person in the Central African Republic was $1,010 in 1960, and it actually declined to $628 by 2010. The Central African Republic's average annual growth rate during this period was -0.95%, and it was the poorest economy in the table in the year 2010.

The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand the different growth experiences of these economies.

Economy	Real Income per Person in 1960	Real Income per Person in 2010	Annual Growth Rate
	(Dollars)	(Dollars)	(Percent)
Australia	13,817	37,338	2.01
Finland	8,837	31,601	2.58
Thailand	772	8,467	4.91
Ireland	7,807	41,558	3.40
Pakistan	717	2,477	2.51
Central African Republic	1,010	628	-0.95

Indicate which economy satisfies each of the following statements.

Statement	Australia	Central African Republic	Finland	Ireland	Pakistan	Thailand
This economy had the highest level of real income per person in the year 2010.
This economy experienced the fastest rate of growth in real income per person from 1960 to 2010.

Consider the following list of four countries. Which economy began with a level of real income per person in 1960 that was below that of Finland and grew fast enough to catch up with and surpass Finland's real income per person by 2010?

Australia

Central African Republic

Ireland

Thailand

Answer 1

This economy had the highest level of real income per person in the year 2010. = Ireland because it has the highest value in 2010 at 41558

This economy experienced the fastest rate of growth in real income per person from 1960 to 2010.= Thailand, as it's growth, was highest at 4.91%

The economy which began with a level of real income per person in 1960 that was below that of Finland and grew fast enough to catch up with and surpass Finland's real income per person by 2010?

= Ireland as it was smaller in 1960 but surpassed Finland in 2010