Answer to Question 1
The World Bank divides countries into four different categories based on their gross
national income (GNI). The categories are determined according to upper and lower
limits set by the World Bank. Low-income economies are primarily agricultural nations
found in Asia and Africa, where half of the world's population resides. Among those
most affected by poverty in low-income economies are women and children. Middle-
income economies are divided into upper-middle (e.g., Brazil and Mexico) and lower-
middle (e.g., Southeast Asia). Despite the designation of middle-income, at least 30
percent of the population in these countries lives in poverty. High-income economies
have a high standard of living (e.g., Western Europe, Japan, United States).
Answer to Question 2
True