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 the per-capita-income gap one year later will be

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Quizplus · Accepted Answer

The per capita income of the IAC after a 2% increase is $28,200 * 1.02 = $28,764. The per capita income of the DVC after a 2% increase is $1,200 * 1.02 = $1,224. The gap one year later is $28,764 - $1,224 = $27,540.

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