Question

1. Economic growth around the world The following table reports real income per person for several...

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 Zambia was $1,412 in 1960, and it actually declined to $1,309 by 2010. Zambia's average annual growth rate during this period was -0.15%, 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)

Austria 9,773 35,031 2.59
Venezuela 7,307 9,762 0.58
Botswana 468 9,515 6.21
Malaysia 1,624 11,863 4.06
Honduras 1,932 3,146 0.98
Zambia 1,412 1,309 -0.15

Indicate which economy satisfies each of the following statements.

Statement

Austria

Botswana

Honduras

Malaysia

Venezuela

Zambia

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 Venezuela and grew fast enough to catch up with and surpass Venezuela's real income per person by 2010?

Austria?

Botswana?

Honduras?

Malaysia?

Homework Answers

Answer #1

-This economy had the highest level of real income per person in the year 2010.

Austria at the highest 35031

-This economy experienced the fastest rate of growth in real income per person from 1960 to 2010

Botswana at 6.21

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

Malaysia was below Venezuela in 1960 but surpassed it in 2010

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