Suppose that,in 1950,Japan has an initial per capita GDP of $15,000 per year and China has a per capita GDP of $2,500.But China is growing at 7 percent per year and Japan is growing at 2 percent per year.In 2005,__________ is the lower-income country,with a per capita GDP of approximately __________.
A)China;$73,642
B)China;$40,374
C)Japan;$40,374
D)China;$6,729
E)Japan;$73,642

Question

Quizplus · Accepted Answer

In 2005, Japan's GDP grows to approximately $40,374, making it the lower-income country compared to China's growth rate.

Suppose That,in 1950,Japan Has an Initial Per Capita GDP of $15,000