Question

Assertion (A): Per capita income is a better indicator than total income to compare the development of nations.

Reasoning (R): Per capita income addresses how income is distributed among people.

• A. Both A and R are true, and R is the correct explanation of A.
• B. Both A and R are true, but R is not the correct explanation of A.
• C. A is true, but R is false.
• D. A is false, but R is true.

Answer 1

The correct option is C A is true, but R is false.

Per capita income is a better indicator than total income to compare the development of nations, because countries have different populations and comparing total income will not show what an average person is likely to earn. However, per capita income does not address how the income is distributed. Some might have much more income to spend, and some might not have access to basic necessities.