Learning Path
Question & Answer1
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Explore TopicChoose the Best Answer
A
The country has a large population but unequal wealth distribution.
B
The country has a high standard of living for all citizens.
C
The country is likely a small, wealthy nation with minimal urbanization.
D
The country generates high productivity from its agricultural sector.
Understanding the Answer
Let's break down why this is correct
Answer
If Maria analyzes a country with a high Gross Domestic Product (GDP) but a low Gross National Income (GNI), it may indicate that the country has a lot of economic activity, but much of the income generated is not staying within the country. GDP measures the total value of goods and services produced within a country's borders, while GNI accounts for the income earned by residents, including income from abroad. This situation often happens in countries where foreign companies operate and send profits back to their home countries, leading to high GDP but lower GNI for the local population. For example, if a country has many factories owned by international companies, it might produce a lot of goods (high GDP) but not provide much income to its citizens (low GNI). This scenario can suggest that the benefits of economic activity are not being fully shared with the local people.
Detailed Explanation
A high GDP means the country makes a lot of money overall. Other options are incorrect because This answer suggests everyone is doing well; This option implies the country is small and wealthy.
Key Concepts
Economic Productivity Classification
Gross Domestic Product (GDP) and Gross National Income (GNI)
Income inequality
Topic
Economic Productivity Classification
Difficulty
easy level question
Cognitive Level
understand
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