Macroeconomics: Private and Public Choice
Macroeconomics: Private and Public Choice
15th Edition
ISBN: 9781285453545
Author: Russell Sobel; Richard Stroup; James Gwartney; David Macpherson
Publisher: South-Western College Pub
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Chapter 17, Problem 1CQ
To determine

Identify the five countries with a high income per capita.

Expert Solution & Answer
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Explanation of Solution

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

Table -1
High-income countriesIncome per personMiddle-income countriesIncome per personLow-income countriesIncome per person
Singapore$78,958Portugal$26,175China$12,599
Norway63,999Greece24,570Egypt10,049
Switzerland55,275Malaysia24,460Indonesia10,033
Hong Kong52,552Poland23,966Ukraine8,267
United States52,118Russia 23,293Philippines6,649
Ireland48,400Chile21,980Bolivia6,235
Netherlands45,662Romania19,104Nigeria5,639
Germany43,559Venezuela16,751India5,439
Australia43,256Mexico16,284Bangladesh2,979
Canada42,774Botswana15,359Uganda1,689
United Kingdom38,149Brazil15,162Niger895
Japan35,635Thailand15,012Malawi784

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 growthGrowth of per person GDP (1990-2014)
China9.2%
Vietnam5.5%
India4.8%
Sri Lanka4.5%
South Korea4.4%
Panama4.2%
Chile3.7%
Dominical republic3.7%
Poland3.6%
Malaysia3.6%

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

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