Question

Which of the following is true of emerging economies?

A. They contribute approximately 50% of global GDP
B. They refer to developed countries
C. They continue to repeat their extraordinary growth sprint
D. They are likely to experience a decline in their absolute GDP as a group relative to developing countries

Answer 1

Option A is the true statement regarding emerging economies, as they are known for significant contributions to global GDP and exhibit faster growth rates compared to developed nations.

Step-by-step explanation:

Among the given options, the one that is true of emerging economies is A. They contribute approximately 50% of global GDP. This captures the essence of their significant role in the global economy despite them not being fully developed. Emerging economies like China and India are part of the fast-growth club and are contributing to a large share of the world's population and economic activity. Emerging economies are characterized by their rapid GDP growth, which outpaces that of high-income countries.

These nations have made sizable investments in human and physical capital, benefited from technological advancements, and experienced favorable market forces and government policies. Notably, countries such as China and India showcase extraordinary growth, which is part of the larger pattern of economic convergence wherein lower-income countries grow faster than their richer counterparts.