Chapter 17, Problem 1CQ

To determine

Identify the five countries with a high income per capita.

Explanation of Solution

Table-1 shows the data of per person GDP level of different countries in 2014 as follows:

Table -1
High-income countries	Income per person	Middle-income countries	Income per person	Low-income countries	Income per person
Singapore	$78,958	Portugal	$26,175	China	$12,599
Norway	63,999	Greece	24,570	Egypt	10,049
Switzerland	55,275	Malaysia	24,460	Indonesia	10,033
Hong Kong	52,552	Poland	23,966	Ukraine	8,267
United States	52,118	Russia	23,293	Philippines	6,649
Ireland	48,400	Chile	21,980	Bolivia	6,235
Netherlands	45,662	Romania	19,104	Nigeria	5,639
Germany	43,559	Venezuela	16,751	India	5,439
Australia	43,256	Mexico	16,284	Bangladesh	2,979
Canada	42,774	Botswana	15,359	Uganda	1,689
United Kingdom	38,149	Brazil	15,162	Niger	895
Japan	35,635	Thailand	15,012	Malawi	784

According to the World Bank report, Table-1 represents the data of the per capita GDP of different countries. From the Table-1, the high income per capita countries are Country S ($78,958), Country N ($63,999), Country SW ($55,275), Country HK ($52,552), and Country U ($52,118). Based on the method of purchasing power parity, the price income of each country is converted to a common currency. The income is so high in these countries because of the overstatements. However, the gross domestic product omits production held in the household sector.

Table-2 shows the growth rate of per person GDP for high-growth, high-income industrial, and low-growth countries from 1990–2014 as follows:

Table -2
High growth	Growth of per person GDP (1990-2014)
China	9.2%
Vietnam	5.5%
India	4.8%
Sri Lanka	4.5%
South Korea	4.4%
Panama	4.2%
Chile	3.7%
Dominical republic	3.7%
Poland	3.6%
Malaysia	3.6%

According to Table-2, none of the high-income countries are ranked among the fastest growing countries in the world in 1990.