Answer to Question #226755 in Economics for Jack

Question

How low income countries today differ from developed countries in their earlier stages?

Answer 1

Economic growth and development is all about transforming the GDP, so that more people attain better living standards and wealth. Economic inequality refers to the disparities in income distribution amongst the population. As a result, there exists a wide gap between developing countries and developed countries.

In the early stages of economic progress in developing countries, per capita income is usually low.