Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?
Correct answer: C. $25
- A. $145
- B. $40,000
- C. $25
- D. $100
Explanation
Per-capita income rose from $120 ($120,000 ÷ 1,000) to about $145 ($160,000 ÷ 1,100), an increase of roughly $25. Total real income rose by $40,000, but population growth reduced the per-person gain.
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