If the per capita incomes of DVCs (developing countries)grew at the same annual rate as those of IACs (industrially advanced countries), then the absolute income gap between rich and poor nations over the years would

Question

Quizplus · Accepted Answer

If both developing and industrially advanced countries grow at the same percentage rate, the absolute dollar amount of growth in the richer countries will be larger because they are growing from a higher base. This results in the absolute income gap between rich and poor nations widening over time.

If the Per Capita Incomes of DVCs (Developing Countries)grew at the Same