The following table shows the GDP per capita of various countries for the years 1960 and 2010 in PPP-adjusted 2005 dollars. The table also contains the implied growth rates, which show how much on average each country needed to grow each year to reach the 2010 level of GDP per capita starting from the 1960 level of GDP per capita. Use the table to answer the

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The following table shows the GDP per capita of various countries for
the years 1960 and 2010 in PPP-adjusted 2005 dollars. The table also
contains the implied growth rates, which show how much on average each
country needed to grow each year to reach the 2010 level of GDP per capita
starting from the 1960 level of GDP per capita. Use the table to answer the
following questions.

1. Why have some countries reduced the gap between their incomes and
that of the United States and other countries failed to do so?

Implied (average)
annual growth
Country
GDP per Capita ($)
United States
Singapore
China
Kenya
Haiti
Ghana
1960
15,398
4,383
772
1,020
1,513
1,286
2010
41,365
55,862
7,746
1,247
1,410
2,094
2.00%
5.22%
4.72%
0.40%
-0.14%
0.98%
Transcribed Image Text:Implied (average) annual growth Country GDP per Capita ($) United States Singapore China Kenya Haiti Ghana 1960 15,398 4,383 772 1,020 1,513 1,286 2010 41,365 55,862 7,746 1,247 1,410 2,094 2.00% 5.22% 4.72% 0.40% -0.14% 0.98%
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