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Asia and the Middle-Income Trap practice exams Accurate practice questions with in-depthThe term Middle Income Trap refers to countries which stagnate economically after reaching a certain level of per capita income on the basis of labour and capital intensive growth, and are struggling to transition towards more skill intensive and technology driven development. It has resonance for the increasing number of countries in Asia who have either languished in middle income status for extended periods of time, or are worried about growth slow