Case Study

Analyzing Economic Performance Using Different Scales

An economist is preparing a report on the economic performance of two countries, Country A and Country B, from 1980 to 2020. She creates two graphs using the same GDP per capita data.

  • Graph 1 uses a standard linear scale on the vertical axis. On this graph, the line for Country A is consistently and significantly above the line for Country B throughout the entire period.
  • Graph 2 uses a ratio scale on the vertical axis. On this graph, the line for Country B is much steeper than the line for Country A.

Based on a comparative analysis of these two graphs, what is the most accurate conclusion you can draw about the absolute level of economic output and the economic growth rates of these two countries during this period? Justify your reasoning.

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Updated 2025-08-09

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