Question

Residents of poor countries tend to have fewer automobiles per capita because:

	a.	tax rates are higher in poor countries, which leaves less money to spend on cars.
	b.	residents of poor countries generally prefer to walk.
	c.	residents of poor countries tend to live on farms, where cars are unnecessary.
	d.	residents of wealthy countries have automobiles provided to them by the government.
	e.	lower per capita real gross domestic product (GDP) growth rates allow for less spending on automobiles.

Answer 1

The answer is:- E) lower per capita real gross domestic product (GDP) growth rates allow for less spending on automobiles.

The final value of all goods and services produced within the domestic boundary of a country is known as GDP. In poor country per capita gross domestic product is very low in otherwords we can say that the income of per person is very low. Generally automobile is considered as a luxury, so after spending most of their income in necessities, they don’t have enough money left for luxuries i.e automobiles.