The World's Economies Can Be Divided into Four Main Categories

question 23

Multiple Choice

The world's economies can be divided into four main categories according to their annual per-capita income levels: low-income, lower middle-income, upper middle-income and high-income economies. What category would sub-Saharan Africa fall under?

• A) low-income
• B) upper middle-income
• C) high-income
• D) lower middle-income
• E) Sub-Saharan Africa falls between lower-middle and upper-middle.

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Definitions:

NPV

Net Present Value, a method used in capital budgeting to analyze the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Internal Rate of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows zero.

Required Return

The minimum return an investor expects to achieve on an investment, considering the investment's risk level.

NPV

or Net Present Value, is a financial metric used to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.