Per Capita Income

Q.

What is the difference between national income and per capita income?

Q. The average income of a country is also known as .

1. per person income
2. individual income
3. per capita income
4. per head income

Q.

What Is the Best Indicator of Economic Development?

Q. Per capita income is a better indicator of development as compared to national income.

1. True
2. False

Q. The per capita income of a country increases only when the rate of growth of national income is more than the rate of growth of population.

1. False
2. True

Q. Which of the following statements is correct with respect to the relation between per capita income, national income, and the population of a country?

1. Per capita income increases only when the rate of growth of national income is equal to the rate of growth of population.
2. Per capita income increases only when the rate of growth of national income is more than the rate of growth of population.
3. Per capita income increases only when the rate of growth of national income is less than the rate of growth of population.
4. National income and population of a country do not impact per capita income.

Q. Explain the terms: GDP, GNP and NNP.

Q. Why is the per capita income of a country a better indicator of development than just the total income?

1. Total income considers only the money value of goods produced.
2. Per capita income reveals the income considering the population.
3. Per capita income is calculated by comparing the total income of developed nations.
4. Total income is calculated on a half-yearly basis.

Q. Which of the following is not among the categories identified by the World Bank for classification of countries based on per capita income?

1. Low income countries
2. Higher-middle income countries
3. Middle income countries
4. High income countries

Q. The US dollar is considered as the common currency for calculation of the economic indicators and development. Which of the following could be the reason behind such a practice?

1. Most of the countries use the US dollar as their national currencies.
2. It provides the convenience of calculation as countries use various currencies.
3. The WTO officially declared the US dollar as the international currency.
4. The US dollar is the only widely accepted currency for international transactions.

Q. The per capita income of a country represents which of the following?

1. Total value of production
2. Cumulative income
3. Total income
4. Average income

Q. Per capita income is calculated in Indian rupee.

1. False
2. True

Q. The national income of two countries A and B were same in the year 2020. The total population of country A is 30 crore, whereas country B has a population of 10 crore.
With regard to these two countries, which of the following statements is correct?

1. Country B has lower per capita income.
2. Country B has higher per capita income.
3. National income and the population are not enough to determine the per capita income.
4. Both countries have the same level of per capita income.

Q. A country having a per capita income of more than $12, 536 can be categorised under which of the following categories?

1. Low income country
2. Lower-middle income country
3. High income country
4. Higher-middle income country

Q. The per capita income of a country increases only when the rate of growth of the population is more than that of the national income.

1. False
2. True

Q. Which of the following indicators helps us to get an insight on the growth in national income with respect to the population growth of a country?

1. Gross domestic product
2. Net national expenditure
3. National income
4. Per capita income

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Why does per capita income not reflect the quality of living of all people?

1. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Does not consider social welfare
2. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Qualitative tool to measure development
3. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Does not represent standard of living
4. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Assumes that the national income is evenly distributed

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following is/are reason(s) to calculate per capita income in US dollars?

1. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> It is one of the strongest currencies.
2. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> It is accepted as a medium of exchange internationally.
3. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> It remains stable under all market conditions.
4. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> It allows comparison between different countries.

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following factors is/are not directly reflected by per capita income?

1. Education
2. Income distribution
3. Healthcare facilities
4. Nutritious food

Q. In country X, there are five people namely, A, B, C, D, and E. Their annual incomes are Rs. 1, 00, 000, Rs. 5, 00, 000, Rs. 3, 50, 000, Rs. 2, 30, 000, and Rs. 1, 75, 000 respectively.

Calculate the per capita income of country X.

1. Rs. 13, 55, 000
2. Rs. 5, 00, 000
3. Rs. 1, 00, 000
4. Rs. 2, 71, 000

Q. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Read the information given below, and determine which of the following countries is the most developed.

Country A:
Total income = 3, 750, 000, 000 USD
Total population = 1, 000, 000

Country B:
Total income = 1, 800, 000, 000 USD
Total population = 300, 000

Country C:
Total income = 5, 670, 000, 000 USD
Total population = 500, 000

1. Country A
2. Country B
3. Country C
4. All the three countries are equally developed.

Q. Per capita income can be alternatively called as which of the following?

1. Total income
2. Incremental income
3. Average income
4. Additional income

Q. Internationally, per capita income is usually expressed in _______.

1. Kuwaiti dinar
2. Indian rupees
3. US dollars
4. Bahraini dinar