Question

What are the four categories used by the World Bank to classify nations on the basis of national income per capita? Identify any two nations of your choice for each of the four categories?

Short answer

The World Bank classifies countries into four income categories. Those are high

-income, upper-middle-income, low-middle-income, and low-income.

Step-by-step solution

Nations based on the income categories given by the world bank

High-income nations: such are nations that are fully developed, and the national income is very high. Examples of these are Switzerland and Norway, with a gross national income of $87,950 and $78,250.

Upper-middle-income nations: These are the nations that are developing and experiencing a swift growth rate. For example, the Maldives and Sri Lanka, whose gross national incomes are $9,310 and $4,060, respectively.

Low-middle-income nations: These are the emerging nations. Examples are India and Indonesia, with gross national incomes of $2,010 and $1,150, respectively.

Low-income nations: These are typically poor nations with very poor growth rates. For example, Afghanistan and Bangladesh with gross national incomes of $20.46 and $310, respectively.