Question

Read about the economy in Country A. Based on what you now know, what are at least three factors that demonstrate that Country A has a developing economy?
Country A has a GDP of $500 million and a GDP per capita of $7,000. Its economy is based on agriculture and copper mining. There is inadequate infrastructure, slow economic growth, and high unemployment. However, it is aggressively seeking foreign investment, and some multinational corporations have begun outsourcing jobs to the country's major cities. However, for most, the standard of living remains low. It has never had a centrally planned economy in its history.

Answer 1

Answer:

Sample response: Country A has a GDP per capita of $7,000, which seems very low. Its economy is based on two industries: agriculture and copper mining. It does not have diverse industries, and it has a very small service sector. In addition, the standard of living is low. Based on all these factors, it seems clear that Country A has a developing economy.

Explanation:

Answer 2

The three factors that demonstrate that country A has a developing economy are as follows:
1. The economy of the country is based on agriculture and copper mining: Agriculture is often the major source of income in developing countries.
2. The country has low per capital real income: this leads to low savings and low investments. This implies that average citizens make only enough money to live on and have nothing left to save or invest. This creates a cycle of poverty.
3. The country has high rate of unemployment: developing countries usually suffer from massive unemployment as a result of scarcity of job.