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Multiple Choice
According to the textbook, high-income countries are generally those countries that:
A
have low levels of industrialization
B
experience rapid population growth and low literacy rates
C
rely primarily on subsistence agriculture
D
have a high gross domestic product (GDP) per capita
Verified step by step guidance
1
Understand the concept of 'high-income countries' in microeconomics and development economics, which typically refers to nations with a high standard of living and economic prosperity.
Recall that Gross Domestic Product (GDP) per capita is a common measure used to assess the average economic output per person, indicating the wealth and income level of a country's population.
Recognize that low levels of industrialization, rapid population growth, low literacy rates, and reliance on subsistence agriculture are characteristics more commonly associated with low-income or developing countries, not high-income countries.
Identify that high-income countries usually have advanced industrial sectors, higher literacy rates, slower population growth, and diversified economies rather than subsistence agriculture.
Conclude that the defining feature of high-income countries is having a high GDP per capita, which reflects greater economic productivity and higher average income levels.