Question

Although countries such as China and India are currently relatively poor, their economies are already large in absolute terms and growing more rapidly than those of many advanced nations.

Answer 1

Answer:

True

Explanation:

In nominal dollars, China is currently the second largest economy in the world and India is the fifth largest. They are both considered developing nations since the GDP per capita is still low compared to other countries, China's GDP per capita = $10,100 and India's GDP per capita =  $2,170. Even though their economies are large, their populations are even larger, both countries have around 1.3 billion people living in them.

If we use the purchasing power parity (PPP) their numbers are a little better, with Chinese economy being number one in the world with $27.31 trillion compared to the US's $21.44 trillion. The US is the only country whose PPP equals its nominal GDP since the American economy is used as the base economy for PPP calculations.

Both China's and India's economic growth rates are also higher than most developed nations, 5.8% for China and 7.5% for India.

Answer 2

Answer:

True.

Explanation:

This statement is true because China and India, while still very poor countries, have made great strides in the development of the country in recent decades through capitalist reforms such as economic decentralization and trade liberalization from the 1970s and 1980s, allied to low taxation, low regulation and bureaucracy, which strongly contributed to the predominance of the private sector in such countries.