Question

Per capita income is useful for

• A. Determining the rate of inflation
• B. Comparing the economic status of different countries
• C. Measuring the total wealth of a nation
• D. Calculating the unemployment rate

Answer 1

Answer:

B. Comparing the economic status of different countries

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.