Question

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 Real Income per Person in 1960 (Dollars) Real Income per Person in 2010 (Dollars) Annual Growth Rate (Percent)
Australia 13,817 37,338 2.01
Finland 8,837 31,601 2.58
Thailand 772 8,467 4.91
Ireland 7,807 41,558 3.40
Pakistan 717 2,477 2.51
Central African Republic 1,010 628 -0.95
Indicate which economy satisfies each of the following statements.

Statment Australoa Cental African Republic Finland Ireland Pakistan Thailand
This economy experienced the fastest rate of growth in real income per person from 1960 to 2010
This economy had the highest level of real income per person in the year 2010
Consider the following list of four countries. Which economy began with a level of real income per person in 1960 that was below that of Finland and grew fast enough to catch up with and surpass Finland's real income per person by 2010

a. Australia

b. Central African Republic

c. Ireland

d. Pakistan

Answer 1

Thailand

Ireland

c

Step-by-step explanation:

Thailand has the highest annual growth rate so it is fastest economy to grow in rela income per person form 1960 to 2010 that is 4.91%

Irleand has the highest real income per person in year 2010 that is $41,558

Ireland, Pakistan and Thailand had lower real income per person than Finland in 1960 but only Ireland had higher real income per person than Finland in 2010.