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 Niger was $945 in 1960, and it actually declined to $570 by 2010. Niger's average annual growth rate during this period was -1.01%, 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)
Canada	12,946	35,810	2.06
United Kingdom	11,884	32,034	2.00
Korea	1,610	28,702	5.93
Hong Kong	4,518	44,070	4.66
Guatemala	1,985	3,859	1.34
Niger	945	570	-1.01

Indicate which economy satisfies each of the following statements.

Statement	Canada	Guatemala	Hong Kong	Korea	Niger	United Kingdom
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 well below that of the United Kingdom and grew fast enough to catch up with and surpass the United Kingdom's real income per person by 2010?

Canada

Guatemala

Hong Kong

Niger

Answer 1