Which statement best describes the level of economic development in developed countries?

Which statement best describes the level of economic development in developed countries?

• A. Low GDP and low per capita income
• B. GDP growth is negative
• C. GDP per capita fluctuates widely
• D. High GDP and per capita income often $20,000 per year or higher

Answer: (D)

Developed countries produce a very large total amount of goods and services and, on average, generate a high income for each person. GDP shows the total value of everything produced, while GDP per capita divides that total by the population to give an average income level. Because these economies are advanced, diversified, and productive, both GDP and GDP per capita tend to be high. That’s why the statement describing them as having high GDP and high per capita income (often around twenty thousand dollars per person per year or more) fits best. In contrast, low GDP and low per capita income describe less-developed economies, negative growth isn’t a defining feature of developed nations, and large fluctuations in GDP per person would signal more instability than is typical for mature economies.

Developed countries produce a very large total amount of goods and services and, on average, generate a high income for each person. GDP shows the total value of everything produced, while GDP per capita divides that total by the population to give an average income level. Because these economies are advanced, diversified, and productive, both GDP and GDP per capita tend to be high. That’s why the statement describing them as having high GDP and high per capita income (often around twenty thousand dollars per person per year or more) fits best. In contrast, low GDP and low per capita income describe less-developed economies, negative growth isn’t a defining feature of developed nations, and large fluctuations in GDP per person would signal more instability than is typical for mature economies.