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. If both countries experience a per-capita-income growth of 2 percent, then their respective per-capita income levels will become:

Question

Quizplus · Accepted Answer

To calculate the new per capita income levels:
- For the IAC: $28,200 x 0.02 = $564 (growth amount) $28,200 + $564 = $28,764
- For the DVC: $1,200 x 0.02 = $24 (growth amount) $1,200 + $24 = $1,224

Therefore, the correct answer is B: $28,764 and $1,224.

An IAC (Industrially Advanced Country) Had a Per Capita Income