An IAC (industrially advanced country)had a per capita income of $28,200, while a DVC (developing country)had a per capita income of $1,200 in a given year. If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita-income levels one year later will become

Question

Quizplus · Accepted Answer

A 2 percent increase in $28,200 results in $28,200 * 1.02 = $28,764. Similarly, a 2 percent increase in $1,200 results in $1,200 * 1.02 = $1,224.

An IAC (Industrially Advanced Country)had a Per Capita Income of $28,200