Question

How did World Bank classify countries what Criterion did the use what are its

Answer 1

Answer:

• World Bank use Per capita income for classifying countries.
• On the basis of criterion used by world Bank countries are divided into three categories:

1. Rich countries or developed countries.
2. Middle income or developing countries
3. Poor or under developed countries

• Limitations of per capita income:
• The conversion of currency of each country into dollars does not tell us about the purchasing power of a country.
• Per capita income is based in the size of population. If the country has large population it's per capita income will be low besides having large national income.
• It does not tell us how income is distributed among people of the country.
• It does not tell us anything about the availability of various services and facilities which influence the quality of life.

Explanation:

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