Which of the following is NOT classified as a low-income nation ?
Show answer Hide answer
Answer: A. United Arab Emirates
Explanation
The United Arab Emirates has a diversified, high-income economy driven by energy exports. High per capita gross national income places the nation well above low-income thresholds. International economic classifications categorize the nation as a high-income developed country. Income classifications are determined annually by institutions like the World Bank using GNI per capita. Low-income nations typically face significant development challenges and agricultural dependencies. Oil wealth has transformed Gulf nations into prosperous high-income economic centers.
Global financial institutions use these income groupings to allocate development aid and grants. Comparative economic studies rely on accurate country categorizations for statistical validity. Trade agreements often differentiate obligations based on national income status and development levels. Option b is incorrect because Armenia is classified as an emerging or middle-income nation. Option c is incorrect because Sudan is widely classified as a low-income developing nation. Option d is incorrect because Bangladesh remains classified among lower-income developing nations.
Related questions
Q1. What may result from an increase in economic injections ?
Show answer Hide answer
Answer: A. An outward shift of aggregate demand- and demand-pull inflation
Economic injections such as government spending and investment add spending power to the economy. Increased spending shifts the aggregate demand curve outward to the right over time. When aggregate demand outpaces produc...
Q2. What kind of signal is communicated by a rise in the price of beef ?
Show answer Hide answer
Answer: C. tells producers to produce more beef.
A price rise in beef acts as a market signal indicating higher profitability. Higher prices tell producers to increase beef production to capture profits. Market systems use price signals to coordinate decentralized prod...
Q3. What should be the outcome of enhanced productivity ?
Show answer Hide answer
Answer: C. Lead to a shift in supply outwards (i.e more supplied at each and every price)
Enhanced productivity allows firms to produce goods and services using fewer resources overall. Lower production costs increase profitability and willingness to supply at every price point. This operational improvement s...
Q4. What is an industry dominated by a few large firms called ?
Show answer Hide answer
Answer: C. a concentrated industry
An industry dominated by a small number of large firms is known as an oligopoly. High market concentration means a few key players control most of the output. Economists use concentration ratios to quantify the market sh...
Q5. What determines an individual firm's demand for a factor of production ?
Show answer Hide answer
Answer: B. Slopes downward due to the factor’s diminishing marginal product
A firm factor demand slopes downward due to the diminishing marginal product. Each additional unit of an input adds less output than the previous unit. Diminishing marginal returns dictate the negative slope of factor de...
Q6. What is the effect of an increase in the wage rate ?
Show answer Hide answer
Answer: D. will cause a shift in the demand for labour
An increase in the wage rate raises the overall cost of employing labor inputs. Higher labor costs alter business operating expenses and influence the demand for workers. Changes in input prices cause firms to adjust the...