Which statement correctly describes a low-income country (as used by the World Bank)?

Which statement correctly describes a low-income country (as used by the World Bank)?

• A. Defined by the World Bank, as a country with a GNI per capita between $1,045 and $2,074 in 2013.
• B. Defined by the World Bank as a country with a GNI per capita above $12,000.
• C. Defined by the World Bank as a country with a GNI per capita below $1,000.
• D. Defined by the World Bank, as a country with a GNI per capita of $1,045 or less in 2013.

Answer: (D)

World Bank income categories are based on GNI per capita measured in current US dollars, using the Atlas method. In 2013, a low-income country is defined as having a GNI per capita of $1,045 or less. That makes the statement describing a country with GNI per capita of $1,045 or less in 2013 the correct one. The other descriptions don’t fit the official threshold: one presents a range that doesn’t match the cutoff, another points to a high-income level, and another uses a stricter threshold (below $1,000) that isn’t the 2013 standard. GNI per capita is the total gross national income divided by the midyear population and includes net income from abroad, which is why it’s used for these classifications rather than GDP per capita.

World Bank income categories are based on GNI per capita measured in current US dollars, using the Atlas method. In 2013, a low-income country is defined as having a GNI per capita of $1,045 or less. That makes the statement describing a country with GNI per capita of $1,045 or less in 2013 the correct one. The other descriptions don’t fit the official threshold: one presents a range that doesn’t match the cutoff, another points to a high-income level, and another uses a stricter threshold (below $1,000) that isn’t the 2013 standard. GNI per capita is the total gross national income divided by the midyear population and includes net income from abroad, which is why it’s used for these classifications rather than GDP per capita.