Question

Distinguish between the following.

1. Per capita income and national income.

2. Economic growth and Economic development

Answer 1

1.

Basis of Difference	Per capita income	National income
Meaning	It is the value of the total national income divided by the total population Algebraically, Per Capita Income = $\frac{\mathrm{National}\mathrm{Income}}{\mathrm{Total}\mathrm{Population}}$	It is the total value of the goods and services produced within a country plus income coming from abroad
Average v/s total	It is an average	It is the total income and not the average of the income
Measure of	It is a measure of wealth of the population of a country.	It is a measure of performance of an economy.

2.

Basis of Difference	Economic Growth	Economic Development
Definition	Economic growth refers to a continuous increase in a country's real national income over a long period of time.	Economic development implies a continuous increase in the real national income along with an improvement in other socio-economic factors that indicate the overall well-being of the people.
Scope	It is narrow in scope as it is confined to just an improvement in the real national income.	It has a wide scope as it, along with an improvement in the real national income, also takes into account a host of other factors as well.
Distribution aspect	Importance is given only to the improvement in production of goods and services while the distribution aspect remains neglected.	Distribution aspect is given due importance to aim at improvement in the overall well-being.