1. Economic growth around the world The following table reports real income per
ID: 1161030 • Letter: 1
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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 Australia Finland Thailand Ireland Pakistan Central African Republic Real Income per Person in 1960 (Dollars) 13,817 8,837 772 7,807 Real Income per Person in 2010 (Dollars) 37,338 31,601 8,467 41,558 2,477 628 Annual Growth Rate (Percent) 2.01 2.58 4.91 3.40 2.51 0.95 1,010Explanation / Answer
This economy had the highest level of real income per person in the year 2010- Ireland
This economy experienced the fastest rate of growth in real income per person from 1960 to 2010- Thailand
The real income per person in 1960 in Ireland was below that of Finland. In 2010 real income per person in Ireland surpasses that of Finland. So the third option is correct.
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