GS PrelimsEconomyNational Income Accounting1998

According to the World Development Report, low-income economies are those for which the per capita GNP in 1994 was

A

US $ 925 or less

B

US $ 825 or less

C

US $ 725 or less

D

US $ 525 or less

Correct Answer: Option C

Explanation

1. The question asks for the definition of low-income economies according to the World Development Report (WDR) for the year 1994 based on per capita GNP. 2. The World Bank classifies economies based on Gross National Income (GNI, similar to GNP) per capita. The thresholds are updated annually. 3. For the fiscal year 1996 report (reflecting 1994 data), the threshold for low-income economies was defined as countries with a GNP per capita of US $ 725 or less in 1994. 4. Therefore, option (C) is the correct definition for that period.

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