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 Venezuela and grew fast enough to catch up with and surpass Venezuela's real income per person by 2010?Botswana Honduras Malaysia Zambia 1. Economic growth around the worldThe following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's averageannual 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 by2010. 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 thedifferent growth experiences of these economies.Real Income per Person in 1960Real Income per Person in 2010Annual Growth RateEconomy(Dollars)(Dollars)(Percent)Austria9,77335,0312.59Venezuela7,3079,7620.58Botswana4689,5156.21Malaysia1,62411,8634.06Honduras1,9323,1460.98Zambia1,4121,309-0.15

The rate of growth in real income per person from 1960 to 2010 is measured as below Rate of growth…

Answered: Botswana Honduras Malaysia Zambia

Business

Economics

Botswana Honduras Malaysia Zambia

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 7PA

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Question

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

Botswana

Honduras

Malaysia

Zambia

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.
Real Income per Person in 1960
Real Income per Person in 2010
Annual Growth Rate
Economy
(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

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