Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 13

Table 18P-1 shows the levels and annual growth rates of economic indicators for two countries, Nationavia and Countrystan. Assume these growth rates will remain constant for the foreseeable future. Use this data to determine whether each of the following statements is true, false, or indeterminable.
a. The theory of income convergence (that national incomes in poor countries will "catch up" to those in wealthier countries) holds for Nationavia and Countrystan.
b. Countrystan has higher levels of human capital than Nationavia.
c. Inequality is greater in Nationavia.

d. In 10 years, it's likely that Countrystan will have higher levels of human capital than Nationavia.