Question

Per capita income is calculated by dividing:

• A. Total population by national income
• B. National income by total population
• C. National income by the number of employed people
• D. Total population by the number of households

Answer 1

Answer:

B. National income by total population

Per Capita Income

• It is obtained by dividing the national income by the total population of the country.

• It helps to compare countries and understand the economic status of countries.

• Per Capita Income = National Income / Total Population

• Per capita income will increase only if the rate of growth of national income is higher than the rate of population growth.