Question

How is per capita income calculated for a state or region?

• A. A decrease in total income with a constant population.
• B. High inflation.
• C. An increase in population that outpaces income growth.
• D. Total State Income (GSDP) divided by the total population.

Answer 1

Answer:

D. Total State Income (GSDP) divided by the total population.

• An increase in per capita income happens when the numerator (total income) grows faster than the denominator (population).