Which of these is normally used to classify countries as developed or developing?
A) Exchange rates
B) Interest rates
C) Gross national product
D) Per capita income
E) Inflation rates

Question

Quizplus · Accepted Answer

Per capita income is considered the best measure to classify countries as developed or developing. It measures the average income earned per person in a country and takes into account the country's population size. Countries with high per capita income are generally considered developed, while those with lower per capita income are considered developing. Exchange rates, interest rates, and inflation rates are important economic indicators but are not typically used to classify countries as developed or developing. Gross national product (GNP) is a measure of a country's economic output and can be used in conjunction with other indicators for classification, but it is not as precise as per capita income.

Which of These Is Normally Used to Classify Countries as Developed