Which of the following countries will be better off in the long run?

A. Country A with $1 comma 000 annual GDP per capita and a 6 percent annual growth rate.

B. Country B with $5 comma 000 annual GDP per capita and a 2 percent annual growth rate.

C. Country C with $40 comma 000 annual GDP per capita and a 1 percent annual growth rate.

D. Country D with $60 comma 000 annual GDP per capita and a 0.1 percent annual growth rate.

Question

Business

Joel Farley

30 December, 01:17

Which of the following countries will be better off in the long run?

A. Country A with $1 comma 000 annual GDP per capita and a 6 percent annual growth rate.

B. Country B with $5 comma 000 annual GDP per capita and a 2 percent annual growth rate.

C. Country C with $40 comma 000 annual GDP per capita and a 1 percent annual growth rate.

D. Country D with $60 comma 000 annual GDP per capita and a 0.1 percent annual growth rate.

+3

Answers (1)

Know the Answer?

Pamela Williams · Answer 1

C. Country C with $40 comma 000 annual GDP per capita and a 1 percent annual growth rate.

Explanation:

Eventhough the country D has a larger GDP per capita it is only growing at a. 1 percent rate, in the next 40 years both have had grown 4% and 40% respectevilly and that growth will be exponential since the growth is added with the previous growth, so in the long run Country C will have a much larger and quickier growth than Country D.