Answer:
1. The economy that satisfies each of the following statements:
a. This economy experienced the fastest rate of growth in real income per person from 1960 to 2010:
2. Botswana
b. This economy had the highest level of real income per person in the year 2010:
1. Austria
b. The economy that 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 is:
4. Malaysia
Explanation:
a) Data and Calculations:
Real Income per Real Income per Annual Growth
Person in 1960 Person in 2010 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
b) Botswana has the fastest rate of growth of 6.21%, growing from $468 real income per person in 1960 to $9,515 real income person in 2010.
Malaysia's real income per person in 1960 was $1,624, which was below Venezuela's $7,307. But in 2010, Malaysia's real income per person grew to $11,863 against Venezuela's $9,762.
