Answer Happy

1. Economic growth around the world 1 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 Canada United Kingdom Korea Hong Kong Guatemala Niger Real Income per Person in 1960 Real Income per Person in 2010 (Dollars) (Dollars) 12,946 35,810 32,034 28,702 44,070 3,859 570 11,884 1,610 4,518 1,985 945 Annual Growth Rate (Percent) 2.06 2.00 5.93 4.66 1.34 -1.01

Indicate which economy satisfies each of the following statements. Statement 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. O Canada Guatemala Canada o Hong Kong O Niger O Guatemala. Hong Kong O Consider the following list of four economies. 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? Korea Niger United Kingdom