Consider the following list of four economies. Which economy 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?Botswana Honduras Malaysia Zambia 1. Economic growth around the worldThe following table reports real income per person for several different economies in the years 1960 and 2010. It also gives each economy's averageannual growth rate during this period. For example, real income per person in Zambia was $1,412 in 1960, and it actually declined to $1,309 by2010. Zambia's average annual growth rate during this period was -0.15%, and it was the poorest economy in the table in the year 2010.The real income-per-person figures are denominated in U.S. dollars with a base year of 2005. The following exercises will help you to understand thedifferent growth experiences of these economies.Real Income per Person in 1960Real Income per Person in 2010Annual Growth RateEconomy(Dollars)(Dollars)(Percent)Austria9,77335,0312.59Venezuela7,3079,7620.58Botswana4689,5156.21Malaysia1,62411,8634.06Honduras1,9323,1460.98Zambia1,4121,309-0.15

The rate of growth in real income per person from 1960 to 2010 is measured as below Rate of growth =Real income per person in2010- Real income per person in1960 rate of growth )Real income per person in1960Rate of growth in Austria Rate of growth =$35,031-$9,7739,773=2.58Rate of growth Venezuela rate of growth =$9,762-$7,307$7,307=0.34Rate of growth in Botswana Rate of growth =$9,515-$468$468=19.33Rate of growth in Malesia Rate of growth =$11,863-$1,624$1,624=6.30 Rate of growth in honduras Rate of growth =$3,146-$1,932$1,932=0.63Rate of growth Zambia Rate of growth =$1,309-$1,412$1,412=-0.07 As above the fastest GR (growth rate) in real IPP (income per person )from 1960 to 2010 is experienced by Botswana. Botswana experiences the fastest GR in real income per person from 1960 to 2010. The highest level of IPP in 2010 is experienced by Austria with an income per person of $ 32,031. Austria had the highest level of real IIP in the year 2010. Malaysia IPP in 1960 is $1,624 which is lower than Venezuela's real IPP but in 2010 Malaysia real IPP grew to $ 11,863 which is higher than Venezuela's real IPP in 2010. Therefore the correct option is Malaysia.