Question

Match the following with the appropriate options.

• A. Less than $1,035
• B. Adjusted to inflation
• C. Average income
• D. Goods and services

Answer 1

National income is the total value of final goods and services produced in a country.

National income that is adjusted for price rise is called real national income. Real national income also refers to the purchasing power of income.

Per capita income is the national income divided by the total population.

Countries with per capita income of less than $1,035 are called low-income countries. They are also referred to as underdeveloped countries.