Waec Model Questions Vol1 2021 Economics Question 43

Practice objective / multiple choice question 43 from the 2021 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2021 Economics Objective / Multiple Choice Hard Difficulty
Question 43 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

Country A had a GNI per capita of $4,500 in 2015. Real GDP grew at 6% per year and the population grew at 2% per year up to the end of 2020. From 2021 onward the government's investment programme is expected to raise the real GDP growth rate by an additional 1.5 percentage points (i.e., to 7.5% per year) while population growth remains at 2% per year. Assuming these rates apply uniformly each year, calculate the GNI per capita in 2025 and state whether the country reaches the upper‑middle‑income threshold of $12,000 by that year.

Answer Options

A. Approximately $8,200; the country does NOT reach the $12,000 threshold by 2025.
Correct Answer B. Approximately $7,090; the country does NOT reach the $12,000 threshold by 2025.
C. Approximately $12,500; the country does NOT reach the $12,000 threshold by 2025.
D. Approximately $7,090; the country reaches the $12,000 threshold by 2025.
Correct Answer
B
Correct Option:
Approximately $7,090; the country does NOT reach the $12,000 threshold by 2025.

About This Question

This is Waec Model Questions Vol1 2021 Economics Question 43. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.

Difficulty level: Hard .

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